In a TransMedia World … The Mobile Ad Market is Exploding – Up 36%

Posted on April 28, 2011

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Rhythm NewMedia releases metrics every quarter to help you evaluate the effectiveness of your mobile video ad campaigns and to learn best practices. Data points are based on ads served across iPhone, iPod Touch, iPad, Android and other devices in the US market.  In Q1, Rhythm served over 728 million average monthly content views in the US, up 36% Q/Q. The data points cover ad campaigns from over 70 Fortune 500 brands in Q1 2011.

Key findings for Q1 2011 include:

  1. Huge growth in mobile video advertising: 200+ brands in 2010, 70+ in Q1 2011, 36% quarter over quarter growth from Q4 to Q1
  2. Combine video ad units for maximum effectiveness: Each video ad unit provides marketers with a different, effective approach to deliver their brand message
  3. In-Stream Video ads outperform all other video units: High average completion rate of 87%
  4. In-Stream Video advertising performs best with greater reach: 22% higher clickthrough rates on run of network, broad reach, campaigns due to in-stream video advertising’s immersive and brand building nature that captivates all targets
  5. Interactive Pre-Roll is more effective between screens: Video completion rates average 36% between screens vs. 23% at app launch
  6. Entertainment, Telecom, CPG top categories: Brands in those three categories ran the most campaigns this quarter

Mobile video ad impressions averaged 728 million a month in the first quarter of 2011, up 36% from the prior quarter, according to new data from mobile video ad network Rhythm NewMedia. More than 70 marketers ran campaigns during the quarter, about the same as in the fourth quarter.

Rhythm data is based on ads served across the iPhone, iPod touch, iPad and Android and other mobile devices in the U.S. HBO, Kraft, Disney and Marriott, among other brands, use the company’s network to run pre-roll, tap-to-play and in-stream video ads on the apps and mobile sites of various publishers, including CBS, Fox, NBC, Discovery and AP.

Among the three ad types, the in-stream unit, which plays as a commercial break during full episodes or before video clips, had the highest completion rate: 87%. The pre-roll, which automatically plays when an app is launched or between game levels, had a 27% completion rate, and the tap-to-play ads, requiring a user to tap on a display ad to run, a 21% rate. (Unlike most pre-roll ads on the PC-based Web, viewers can skip the Rhythm pre-roll ads, contributing to the lower completion rate.)

When it comes to click-throughs, the tap ads, which may appear when a user is browsing photos, articles or playing a game, had the highest rate, at 7.2%, compared to 4.5% for pre-roll, and 1.3% for in-stream.

Rhythm suggests advertisers can increase the effectiveness of ad units, depending on how they are used. For instance, in-stream ads perform best in run-of-network campaigns, where the click rate increases to 1.4% from 1.1% on targeted sites or a single site. For pre-rolls, completion rates increase from 23% to 36% when run in between screens instead of at launch.

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