According to a new report by Forrester, mobile video ads will account for 84% of in-app ad spend in 2023 (from already 78% in 2018). Mobile video ad networks have been around for a while but because of bandwith limitations (even in the US) and limited pricing options offered to performance marketers, it took the industry quite a while to adopt video as a viable ad format. Again it is Facebook via its newsfeed who led the way and showed marketers how efficient video ads could be (see Facebook's latest move on video ads). Today mobile video ad networks are the largest distribution channels for mobile marketers. However CPIs keep creeping up, and not all publishers can afford video ad campaigns. It's all based on the CPIs that marketers (and their LTVs) can afford. As an example, in the US a free app will requires $2 to $4 CPIs. A very high converting app may allow CPIs slightly below $2. Based on our experience marketing different types of apps, games hog most of the inventory, followed by (paid) services app such as Uber, then shopping apps (Wish, etc). Utility apps (alarm clocks, calculators, etc) do not generate LTVs allowing to buy on mobile video ad networks. For more info, the largest mobile video ad networks include Applovin, Vungle, and AdColony. As always contact us to learn more.
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March 2021
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