Banners account for just 4% of entertainment mobile ads

Number of mobile campaigns by entertainment brands soars 46%

10 second format is strongest video performer but accounts for just 3% of ad spend

London – 14 August 2014 – Banner ads now account for just 4% of mobile ads run by entertainment brands as they turn to video and rich media formats to take advantage of people’s increasing video consumption on smartphones, according to a new report from mobile video advertising company, Vdopia.

Over a year, Vdopia analysed entertainment mobile ad campaigns viewed by 23 million people in the UK and found the share of banner ads dropped from 14% to 4% in just six months. Video and rich media formats now account for 96%.

The number of mobile ad campaigns run by entertainment brands through Vdopia’s technology increased by 46% and it’s now the highest spending sector on mobile ad campaigns.

“The mobile ad landscape transformation from static banners to more engaging and interactive video and rich media formats is astonishing,” says Farzad Jamal, Vdopia’s European Vice President. “However, it’s not surprising to see entertainment brands embracing this. Almost 23 million¹ Britons view entertainment content via smartphones, they’re over 40%¹ more likely to recall ads than the average smartphone owner, while the sector accounts for 15%² of UK smartphone app time – behind only social and games².”

10 second ads perform best

The report – the latest instalment of the Vdopia Mobile Insights (VMI) Series which covers advertising and consumer trends – also reveals that 10 second ads are the strongest performing formats, despite only accounting for 3% of advertiser spend. VMI includes supporting data from the likes of Ofcom, Millward Brown, Nielsen and eMarketer.

The Video Performance Index (VPI) – a measure of the effectiveness of video ads by completion and click through rates – shows that 10 second ads are 65% more effective than the average video ad. Between them, 20 second and 30 second versions account for nearly three-quarters of entertainment brands’ mobile video ad spend but they’re 27% and 13% less effective, respectively, than the average.

E.g. 100 = average performance, thus, 10 second ads perform 65% stronger than the average entertainment mobile video ad but account for just 3% of its ad spend

“You’d expect shorter ads to have a higher completion rate but, generally, the shorter the ad the more likely people are to engage with it – 10 second ads are twice as effective as 20 second ones,” comments Jamal. “Thus, it’s surprising to see budgets still heavily inclined towards 20 and 30 second versions.”

“This may be attributed to marketers re-purposing TV ads for mobile – a viable solution if the ad can be shortened by removing any secondary messaging and adding an interactivity element. Even for a mobile-dedicated video ad, keeping the length short should prove to be a winning strategy for marketers.”

The report also reveals that the share of campaigns involving multiple video ads, rather than just one version, more than doubled in six months from 16% to 34%. Jamal concludes: “Multiple creatives in a single campaign are a particularly popular tactic for driving engagement before and after film or album releases or in a countdown to a TV premier.”

The report is available to download here.

Editor’s Notes

¹Source: comScore MobiLens, March 2014 (3 month average)
²Source: The Nielsen Company, February 2014

The data comes from an analysis of entertainment mobile campaigns run through Vdopia’s technology during April 2013 – March 2014, reaching 23 million UK people.

More information
Alex Burmaster, Meteor Public Relations: 020 3544 3570

About Vdopia
Vdopia is the global leader in mobile video advertising delivering the best mobile video ad experience for consumers and advertisers across all smartphone and tablet devices. They are the first company to offer the .VDO mobile video format, a proprietary technology which enables delivery of mobile video to more people in more places than any other mobile advertising company in the world. Vdopia’s clients include Coca-Cola, Walt Disney, McDonald’s, Intel, Microsoft, Ford and hundreds of other leading global brands. Vdopia Inc. is a privately held, venture-backed company headquartered in Silicon Valley with offices in Fremont, CA, New York, Los Angeles, Chicago, London, India and Singapore.

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