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BEST PRACTICES IN MOBILE VIDEO ADVERTISING

The market for mobile video advertising on tablets, smartphones, iPod Touches and other portable devices is growing rapidly. The mobile video advertising market is driven by the increasing penetration of smartphones and tablet devices, resulting in explosive growth in usage of ad-supported applications and mobile websitesof which video is the fastest growing segment. But its a misconception that mobile video advertising is limited only to the certain percentage of consumers who watch video on their mobile devices any given day. In fact, all mobile users can be reached through mobile video advertising, even when not consuming video content. Advertisers can deliver video experiences when a consumer launches an application or beats a level of a game, when tapping a banner or, traditionally, in-stream, when watching a video. On its own, video advertising is proven as the most effective way for brands to connect with customers and increase brand awareness and favorability. Why? Video advertising evokes emotional responses to brands through sight, sound and motion delivered to a receptive audience in an immersive way.

PRESENTED BY RHYTHM NEWMEDIA & APPNATION


80% Viewing Articles or Photos 50% Playing Games

% of Rhythm Audience

40% Watching Videos

Whos viewing mobile video advertising?

Mobile video advertising may prove to be the most effective brand medium ever.
Mobile video advertising fulfills this promise more so than any other medium, combining full-screen immersion with finely-tuned targeting and rapidly growing reach, And so, its no surprise that early research is so positive. InsightExpress found that mobile video campaigns lead to a 19X increase in aided awareness, a 4X increase in unaided awareness and a 2X increase in ad awareness when compared to typical online video campaigns. Indeed, mobile video advertising may prove to be the most effective brand medium ever.

Rhythms daily audience interacts with more than just video. Video advertising impressions are delivered throughout the user experience. 15% Interactive In-Stream 25% Interactive Pre-Roll % of impressions to average user

60% Tap to Interactive Video

How do users consume mobile video advertising?

Rhythm NewMedia Inc. All rights reserved. Attribution required for publication of any data provided in this report.

BEST PRACTICES IN MOBILE VIDEO ADVERTISING


Exclusively with APPNATION and for the first time ever, Rhythm is releasing completion rates across Rhythms mobile video advertising network detailing best practices for packaging video ad units in order to maximize the effectiveness of marketing. Rhythm has numerous video ad units including Interactive In-Stream Video, Interactive Pre-Roll, and a variety of display ad units that can tap to full screen interactive video. Rhythm is the only mobile advertising solution to provide all three types of video experiences and the only provider of Interactive In-Stream Video ads served within premium video at scale.

HOW EFFECTIVE IS MOBILE VIDEO ADVERTISING?


IN-STREAM VIDEO delivers guaranteed branding
Interactive In-Stream Video ads appear as an in-stream commercial break in full episodes or in-stream before video clips. 87% Completion Rate

1.3% Video% CTR%

INTERACTIVE PRE-ROLL extends brand reach with higher engagement


Interactive Pre-Roll video ads appear at application launch, between game levels and other screen changes.

27% Completion Rate

4.5% Video% CTR%

TAP TO INTERACTIVE VIDEO finds the most engaged consumers through massive reach
Display ad units that tap to interactive video can be found throughout application experiences such as when a user is viewing photos, articles or playing a game.

21% Completion Rate

7.2% Video% CTR%

% completion rate represents the average length of time a video ad is watched divided by the total video duration. % video CTR is equal to the number of taps to an underlying advertising experience divided by the number of total video advertisements shown.

Rhythm NewMedia Inc. All rights reserved. Attribution required for publication of any data provided in this report.

BEST PRACTICES IN MOBILE VIDEO ADVERTISING


Combining mobile video advertising units drives all brand marketing objectives.
WHAT ARE SOME BEST PRACTICES?
Combining mobile video advertising units drives all brand marketing objectives and helps stretch marketing dollars. You can reach all mobile consumers through multiple mobile video advertising unit buys. In-Stream Video advertising is more effective when run across broader audiences due to its immersive and brand building nature that can captivate all targets and influence new potential consumers. On average, InStream Video advertising running across the Rhythm network drives 22% higher clickthrough rates than targeted in-stream campaigns. Contrary to conventional wisdom, Interactive Pre-Roll is more effective at brand building between screens within an application than at the launch of an application. Video completion rates average 36% between screen vs. 23% at application launch.

KEY TAKEAWAYS
Mobile video advertising is not limited to viewers of mobile video content. In fact, brands can use mobile video advertising to reach ALL mobile consumers even when they are not watching video. Mobile video advertising provides the most immersive and engaging environment for building and expanding brand relationships with consumers. A combination of Rhythms Interactive In-Stream Video, Interactive Pre-Roll Video and Tap to Interactive Video ad units ensures that you deliver your brands message effectively and to the widest possible audience. In-Stream Video delivers guaranteed branding with an 87% completion rate.

Rhythm NewMedia Inc. All rights reserved. Attribution required for publication of any data provided in this report.

BEST PRACTICES IN MOBILE VIDEO ADVERTISING


ABOUT THIS REPORT
Data points are based on ads served across iPhone, iPod Touch, iPad, Android and other devices in the US market. The data points cover ad campaigns from over 70 Fortune 500 brands in Q1 2011. Rhythm releases data every quarter, all previous reports available at www.rhythmnewmedia.com

ABOUT RHYTHM
Rhythm has served billons of video, display and rich media ads on behalf of the worlds largest brands including P&G, GM, Verizon, HBO, Marriott, Kraft, Disney and over 200 others in 2010 alone. Rhythm executes mobile campaigns exclusively across top apps, games and mobile websites from publishers including CBS, ABC, NBC Universal, Fox, Sony Crackle, Warner Bros., Discovery, Viacom, AP and many more. Rhythms high impact ad units provide deeper engagement through the captivating nature of video and the touchable interactivity of mobile devices. Rhythm was founded in 2005. To advertise, please contact: adsales@rhythmnewmedia. com. To become a part of the largest mobile video ad network, please contact: sdk@rhythmnewmedia.com. The metrics provided herein are solely representative of the Rhythm mobile advertising network and may not reflect the overall ecosystem for similar ads.

Rhythm NewMedia Inc. All rights reserved. Attribution required for publication of any data provided in this report.