The Rise of In-App Mobile Video Advertising

March 3, 2024
Posted by
Andrew Pottruff
The Rise of In-App Mobile Video Advertising

Introduction

Mobile video advertising spend surpassed $29 billion in 2024 as brands scramble to engage users where they spend most of their time - in apps. In-app mobile video ads present a huge opportunity for brands looking to captivate audiences, but navigating the world of in-app mobile video ads requires an understanding of the space and best practices.

The Explosive Growth of In-App Mobile Video Ads

In-app mobile video ad spend is projected to reach $41 billion by 2025, representing a 41% increase from 2024 according to eMarketer. This explosive growth underscores the seismic shift of consumer attention and time spent to mobile apps and away from mobile web browsing.

Video ads deliver much higher engagement and recall compared to traditional mobile banner ads. A recent study by Animoto found that video ads were recalled 546% more effectively than static banner ads. With consumers increasingly difficult to grab the attention of, video's immersive and engaging format offers brands a way to cut through the noise.

The highly engaged, lean-forward environment of mobile apps offers an attractive environment for brands looking to deploy video ads and capture user attention. Time spent in apps continues to rise, reaching 4.8 hours per day in 2024 in the U.S. according to App Annie.

Choosing the Right Ad Format

When implementing in-app mobile video ads, choosing the right format is key to balance impact and user experience. Here's an overview of the main in-app mobile video ad formats:

  • Pre-roll video ads play before other video content, like a video ad before a news clip or gameplay video. This format works best to capture attention before immersive content.
  • Mid-roll video ads play in the middle of longer videos, allowing brands to reach engaged viewers mid-stream. Mid-roll ads are commonly used in streaming video and lengthy social video.
  • Rewarded video ads reward users with game credits or content for watching short videos. This win-win format improves user perception of ads. Rewarded ads work well in gaming and some social apps.

No matter which format you choose, remember to keep video ads short, around 15 seconds or less. Let users quickly skip ads after 5 seconds. Place ads in natural breaks in content to avoid disrupting the user experience.

Working with Mobile Ad Networks

Mobile ad networks offer an efficient way to distribute in-app video ad campaigns at scale. Ad networks provide tech to serve video ads in apps across their network of publishers and track campaign performance.

Top mobile video ad networks include ironSource, Appodeal, AdColony, and Vungle. When researching networks, look for those focused on video ad formats that align with your campaign goals. Vet their targeting capabilities, publisher network reach, and campaign performance tracking.

Going directly to individual mobile app publishers allows for highly customized branded ad experiences but requires more legwork. Ad networks simplify distribution across top publishers. A mix of direct publisher deals and network spending is ideal for many brands.

Creating Effective In-App Mobile Video Ad Creative

With in-app environments demanding quick attention, effective creative is key for mobile video ads. Here are some tips for making compelling in-app video ads:

  • Hook viewers immediately with eye-catching visuals and motion in the first 3 seconds.
  • Convey your core message quickly in the first 5-10 seconds before allowing users to skip ads.
  • Optimize video content for sound-off mobile environments with engaging visuals and minimum necessary text.
  • Create multiple short video creatives for testing. Experiment with different creative approaches.

Avoid overly salesy ads or those that feel interruptive to the user experience. Entertain users and communicate value quickly to drive positive brand experiences.

Key Strategies for In-App Video Ad Campaigns

When launching in-app video ad campaigns focus on tight targeting, optimized bidding strategies and thorough performance tracking. Target based on first and third party app data like user demographics, behaviors and interests. Set benchmarks for campaign success tracking metrics like video completion rates, conversions, and cost per conversion.

Constantly refine targeting and bids to improve video ad results over the course of a campaign. Focus spending on top converting placements and audiences. Test different video creatives against each other to determine top performers.

The Future of In-App Mobile Video Advertising

In-app mobile video ad spend will continue its sharp growth trajectory in coming years as consumers flock to streaming video, social video, and interactive video experiences served in apps.

Emerging shoppable video ad formats that drive direct conversion will expand. Privacy limitations on targeting and tracking user data may impact aspects of in-app video ads.

Advertisers who test innovative video formats and placements while closely monitoring performance will remain ahead of the curve. The future is bright for brands leveraging in-app video ads to engage target audiences.

Key Takeaways:

  • In-app mobile video ad spend is growing rapidly as brands turn to apps to reach engaged users.
  • Pre-roll, mid-roll and rewarded video ads are common in-app formats - choose wisely.
  • Work with mobile ad networks or directly with app publishers to run in-app video ad campaigns.
  • Optimize campaign targeting, bidding strategies and creative to drive video ad performance.
  • The future looks bright for in-app mobile video ads as consumers continue to flock to mobile video.