American developers and market manufacturers will spend $1.5 billion on video advertising for mobile devices by the end of 2014.
It is estimated that last year mobile video accounted for 19% of all money spent on digital video advertising. And this number will increase to 26%, according to a report by David Hallerman, head of the analytical department at eMarketer.
By 2018, the amount will increase fourfold and reach $6 billion.
The industry is growing at a tremendous pace, says Hallerman.
At the same time, the analyst notes that in general, the mobile video advertising segment owns only 1% of the total American advertising market.
The mentioned segment has no clear leaders, unlike the mobile advertising market as a whole, where Google dominates. Facebook is in second place, followed immediately by Twitter. According to Hallerman, the volume of the mobile advertising market was estimated at $17 billion by the end of 2013. This year, it is expected to increase up to $35 billion.
Why are advertisers so little interested in mobile video? Hallerman is sure that it’s the slow 3G Internet, because the low download speed negatively affects the interest of buyers in advertising. The situation should change with the spread of more advanced mobile communication technologies, the analyst believes.
At the same time, Hallerman says, the state of affairs in the mobile video advertising market is unique. The lack of leaders makes it especially attractive for those who want to start playing a leading role in the segment.
Mobile video advertising promises to become a new Klondike for those who dare to take a decisive step in this direction.