Mobile Video Ad Revenue To Grow 39.5% By 2020

Digital video advertising will pull in a lot more revenue from mobile devices over the next five years. A new report from Business Insider Intelligence (BII) revealed mobile video ad revenue is expected to grow roughly 39.5% by the year 2020.

BII noted that by the same year, mobile video ad revenue will skyrocket past that of desktop computers, growing nearly three times as fast as revenue on those devices (where it is only slated to grow 12.9%). The compound growth rate of digital video advertising revenue, as a whole, will hit 21.9%, with total digital video ad revenue topping $13.3 billion by 2020.

Additionally, Business Insider’s research branch discovered two separate data points which will help video ad revenue reach this massive $13.3 billion figure. First, digital video will comprise 41% of all display-related advertising on desktop computers by 2020, proving that even on these less-popular devices users prefer seeing video as opposed to static ads. Second, in the month of February 2015, BII found video ads boasted click-through-rates which were 18 times

higher than that of static banner ads in the month of February 2015. Conversion rates of that magnitude are likely to convince more marketers to use video advertising in the future.

BII’s findings in regards to mobile video align with current media consumption trends. A recent report by Vdopia found the average American consumer watches 33 minutes of mobile video per day. Facebook video is seeing a lot of mobile usage, with about 65% of video views coming from mobile devices. And YouTube recently revealed its site receives more mobile views alone than any cable channel can claim.

You can check out all of Business Insider Intelligence’s findings by downloading the full digital video ad report (though you will have to sign up for a free two-week trial of BII).