Mobile video ads aid retention by as much as 40%
With the proliferation of high speed LTE data, and more and more phones capable of playing video, the mobile video ad format is gaining popularity. A Business Insider Intelligence report from December 2014 estimates that mobile video ad revenue in the US will top $4.4 billion in 2018, up by a five-year CAGR of 73 percent from 2013, and grow five times faster than desktop video ads. A slightly more conservative eMarketer study from June 2015 predicts that mobile video revenue will grow three times faster than that of desktop throughout the year 2020. But no one is debating that the fact that mobile video has tremendous momentum.
In partnership, AppLovin and AppsFlyer took a look at data from over one billion devices worldwide and analyzed the growth of mobile video and how effective it is at retention for app installs globally and cross-platform. Retention is a crucial metric for publishers because it measures an app’s stickiness. The companies found that mobile video is the fastest growing advertising format — to the tune of 190 percent growth in the first three quarters of 2015 — and is up to 40 percent more effective at user retention than non-video ad formats. Additionally, in terms of retention for gaming apps, video ads on iOS outperform those on Android. Read more