Predictions are kind of a funny thing; they’re the equivalent of an educated guess, but with a more sophisticated name. These days, predictions have become prayers, as anyone from this generation would surely attest to the fickle nature of the world we live in. And yet, predictions have become a widespread tool for companies to get ahead of the curve, so to speak.
At the end of 2013, Millward Brown released its Digital & Media Predictions 2014, which featured the following two predictions:
1) Smartphones are the only screen that counts for the connected youth of today.
2) Video budgets continue to shift from TV to multi-screen.
Millward Brown won’t be lamenting in the aftermath of its failed predictions anytime soon, as it appears that the advertising industry is following the script. According to estimates from eMarketer, the growth in mobile ad spending across major industries has been substantial; in fact, it’s been well over 100% year-over-year.
Additionally, a recent report from the Mobile Marketing Association found that it was mobile video ads—not TV ads—that generate the most consumer chatter. MMA showed 20 mobile ads to consumers, and 19 of those 20 ads were associated with more excitement than TV spots.
Now, TV isn’t dead by any means, but content consumption is being supplemented, at increasing rates, by a multi-screen environment. Video advertising production is moving away from TV optimization toward an interconnected, multi-media reach-based optimization across all screens.
And yet, marketers are still glued to the tube, as they allocate 45% of ad spend toward TV, while mobile only receives 4%. However, benchmarks and active involvement in favor of mobile ads are evidence of a shift in focus toward the growing online video advertising segment, especially pre-roll.
This demand for online video is not limited to certain industries, as consumers want their whole lives, and all their content, at the palm of their hands.
While it’s clear that marketers are beginning to understand that mobile marketing can’t be ignored, Doron Wesley, Head of Market Strategy at Tremor Video, identifies the main misstep plaguing marketers: “the bulk of online video advertising today is simply repurposed television spots.”
While mobile is certainly a budding investment stream for marketers, it shouldn’t be viewed as simply another channel, but as an additional—and integral—piece of creative.