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Mobile marketing ad revenue from videos not keeping up

Julie Campbell | September 20, 2013

FreeWheel has released a report that said that the income isn’t keeping up with the number of views.

The latest mobile marketing data released from FreeWheel, an online video technology firm, has shown that while people are using their smartphones at an increasing rate to watch videos, the ad revenue that is being generated by that trend is not keeping up.

The second quarter online video monetization report showed that there is a considerable disparity.

The mobile marketing report indicated that an estimated 13.2 percent of all video views within the second quarter originated from smartphones and tablets, but only 5.6 percent of the ad views were from those same devices. FreeWheel went on to say that measurement challenges, consumer viewing habits, and the fragmentation of devices all contribute to this lag in ad revenues over this channel.

Mobile marketing ROI from videos is not reflecting the viewership.

Mobile Marketing - slow ad revenue One of the advisory services team members from FreeWheel, Brian Dutt, has stated that individuals who are viewing videos using a small screen have a tendency to watch for shorter sessions and often choose short form content. This is not the ideal environment for mobile marketing.

Dutt explained that “When we’re talking about mobile, we’re talking about a small-screen, short-form content, so the viewer is on the go,” he said. Add the challenges measuring audience on mobile and the multiple devices and screen sizes to create ads for and “it’s a harder form factor to monetize.”

That said, the viewing of online video has been shown to be maintaining its growth in the double digits. Viewership had increased by 38 percent in the second quarter when compared to the same time a year before. This is being credited to TV everywhere apps as well as original digital content, which is giving people the opportunity to broaden their program viewing to various devices at different screen sizes.

Short form viewing content was by far the video viewing format that saw the most considerable growth over smartphones. As ad loads are notably less within that type of content, mobile marketing opportunities are constricted and therefore aren’t bringing in the same type of revenues that have been achieved over desktops and laptops video viewing.

Social media marketing survey reveals advertising opinions about Facebook

Dan Gendro | September 19, 2013

Research from Ad Age has looked into the way that advertisers feel about that network.

The latest survey from Ad Age has looked into the perceptions that advertisers have developed regarding social media marketing over Facebook, including the adoption of ads on that network and the perception of increases in ROI.

Throughout the last 15 months, Facebook has moved to maturity from having been an experimental channel.

Companies that had previously hesitated to include social media marketing as a significant part of their budgets are now considering the channel to be a natural part of their campaigns and are continuing to boost their spending there. This was a part of the results that were confirmed through the participation of approximately 1,200 subscribers to Ad Age who were polled within the company’s survey in connection with RBC Capital Markets.

This social media marketing survey was conducted in August and was the third of its nature since June 2012.

That June 2012 social media marketing survey occurred just slightly before the IPO at Facebook. This most recent version of the survey has seen an increased percentage of respondents that claim to be using Facebook as a part of their advertising mix. That said, it continues to remain at a steady level greater than 80 percent. At the same time, the specific number who said that they are now advertising over the network has spiked significantly when compared to 15 months before.

Approximately 74 percent of the survey respondents stated that their budgets for Facebook social media marketing now include ad outlays. That number has risen significantly since January 2012, when the figure was 62 percent and even more since June 2012, when it was only 54 percent.

The most recent social media marketing survey included respondents among whom 30 percent identified themselves as employees of ad agencies and 26 percent identified themselves as either marketers or clients. The remainder of the participants were said to be either consultants or employees of media companies.

The increase in the percentage of marketers who are purchasing social media marketing ads from Facebook was said – by Mark Mahaney, RBC Capital analyst – to be a clear indicator of the rising ad income that is headed in Facebook’s direction.