Over the next 10 years, video ads will develop into the dominant format, creating an emotional connection paralleled only by the PC and TV. Here's why.
With more than three-quarters of people online watching more video than a year ago and the popularity of mobile video devices continuing to surge, marketers are testing ways to best deliver advertising without disrupting consumer habits. Advertising agencies and publishers are working together to provide relevant content that entices consumers to watch video ads on their mobile devices.
The convergence of video, the internet and mobile devices has truly changed the way people communicate with each other. There are more than 210 million wireless subscribers in North America, and the emergence of mobile video presents a new set of challenges and opportunities for companies looking to reach consumers.
MSN, Google, Yahoo!, AOL and others have been working with cellphone carriers and handset makers since the early 2000s to build a website-to-phone mobile advertising platform. At stake is a new billion dollar advertising industry with mobile publishers leveraging their unique ability to deliver sponsored video content to subscribers' handheld screens.
Where does the cellphone ad go from here?
In the first quarter of 2007, Yahoo Mobile launched display ads on its mobile web service in 18 countries across Europe, Asia and the U.S.. Yahoo's mobile ad campaigns for Diet Pepsi, Nissan and Procter & Gamble allowed users to click-to-call marketers directly or to click a link to visit their landing page for more information.
Currently, text messages are the most popular way to deliver mobile ads. However, over the next 10 years, video ads will develop into the dominant format. Mobile video ads will include a mix of text, animation, audio and video in an attempt to create an emotional connection with consumers while they watch video programming away from their TVs and PCs.
As mobile video technology advances rapidly, TV networks and web portals will find ways to satisfy consumer demand for sponsored content. Mobile marketing sponsorship packages will include interactive elements designed to put the consumer in control of 1) the type of ad delivered and 2) when the ad is viewed.
Shorter is better
Mobile video content represents the definitive opt-in medium. Offering free downloadable content with a quick sponsorship message is a compelling way to entice consumers to download content onto their portable devices without creating a situation where the user is looking to skip the ad.
Active.com's instructional video downloads for Accelerade delivered relevant, ad-supported content featuring a 3-second pre- and post-roll logo ad -- instead of a 15-second audio-enabled TV ad. The content was used to deliver ads from the PC to a consumer's mobile device, while satisfying their demand for uninterrupted, free content.
The proliferation of affordable video devices is pushing consumers into a new world of controls, allowing them to manage what, when and where they consume video content. The consensus among media execs is that consumers want quick access to content, without watching ads that annoy them.
Millions of video devices = billions of mobile video ads
One of the most remarkable entertainment devices ever created is Apple's new $150 video-enabled iPod Nano with its 2-inch video display window. The Nano truly represents the evolution of more than 75 years of television technology and innovation. A super lightweight device, the Nano is the thinnest Apple MP3 player ever and the smallest video mobile device on the market today.
According to a new study by Opus Research, North American and European mobile ad revenue will surge past $5 billion by 2012 -- up from $106.8 million at the end of 2007. Opus Research also predicts the U.S. market will account for $2.3 billion of the total.
With nearly three billion mobile phones in use globally, it's an exciting time for those pioneering the ever-changing mobile marketing landscape. Over the next decade, mobile ads will feature advergames, widgets, ringtones, wallpapers, text and video ads wrapped around free content and services.
Thanks to Apple's new iPhone, the cellphone, MP3 player, TV and internet are now together on one device. So now I have to decide whether or not I like watching college football and bleeps of advertisements in the palm of my hand. Are you game? I am!
Rand Ragusa is group director, media sale, for the Active.com network of sports sites. Read full bio.