Mobile and connected TV impressions still small part of online video

By February 19, 2013
hand holding smartphone with mobile TV

Newer online channels are a valuable part of digital advertising strategies despite their still low market share. Industries are still entering the scene and can derive much value from some targeting strategies than others.

Video lovers still watch plenty of television, but now a sizeable portion of their consumption takes place on Internet-connected devices. The last quarter of 2012 (PDF) saw video impressions increase by 52 percent, as digital advertising technology provider Videology uncovered within its own network. The Baltimore-based firm saw online video ads making the biggest jump of 60 percent since Q3 2012 (PDF), by far the majority of which was on personal computers at 92 percent. Connected TV, or Internet-connected TV that streams content via various media services, had 3 percent of impressions, and mobile devices, including tablets, had 5 percent of impressions.

Online ad industry landscape becoming more diverse by the quarter

Additional Videology analysis shows that market share of mobile and connected TV dipped a percentage point each, but their infographics only track percentages, not dollar amounts. This omission does not reveal whether the overall online video market increased for Videology clients, and some may have increased their desktop budgets more than the other two channels. However these ads are distributed, more industries are participating - in Q3, 11 industries were purchasing above 2 percent of online video advertising, but in Q4, 13 industries were doing so. Consumer packaged goods was the top spending industry in both quarters.

Vastly discrepant performance rates show value in device targeting

Targeting practices also changed from quarter to quarter. While the majority of advertisers use demographics in their targeting strategy, behavioral targeting grew from 27.8 to 32.5 percent. Interestingly, those who used both shrank slightly from 4.1 to 3.8 percent. Retargeting and dayparting grew significantly, but Videology includes targeting by device only in the most recent report. This data will likely be important, as completion rates and click-through rates are so different between devices. While online video rates are both roughly the same as average, for mobile the CTRs are much higher than average (273.9 percent), while connected TV completion rate is high (126 percent) and the CTR is very low (11.7 percent). These figures could greatly affect advertising strategies.

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