Mobile, together with social, has clearly been one of the fastest growing market segments in 2010. However, unlike social – mobile is still in its infancy, especially when it comes to mobile video, and localization. With the stellar growth in mobile video in 2010, mobile video advertising has also made giant leaps. In 2010, more than 200 Fortune 500 brands including Dell, Toyota and Kraft ran mobile video campaigns, an 8 fold increase from just 25 companies back in 2009. What’s even more interesting is that 70 of these 200 companies ran mobile video ads in the fourth quarter of 2010, according to a new report issued by Rhythm NewMedia, a mobile video ad company.
Not only is mobile video advertising growing rapidly, it is also proving to be stickier than its web brother, with retention rates being as high as 81% after the first 60 seconds, as compared to a 56% retention rate for online video.
Automotive industry has been the leader in using mobile video ads, with around 30% of Rhythm’s ad revenues coming from automotive sector, followed by telecom generating about 17%, CPG generating about 14%, travel and hospitality generating 12%, and entertainment generating 10%.
Apple iPad is already making a big impact, with its larger screen, generating almost double the click-through rates compared to its smaller cousins, the iPod Touch and iPhone. iPad is generating a click through rate of 2% on interactive ads, compared to 1.5% on the iPod touch, about 1% on the iPhone and more than 0.5% on Android phones.
Even after growing at astronomical rate in 2010, mobile video is still in its formative stages with only around 229 million (10%) US mobile users of age 13 or higher watching mobile video in the second quarter of 2010, according to Nielsen. eMarketer expects the mobile video advertising in US to grow to $206.3 million in 2014, up from $35 million in 2010, with the overall mobile video revenue growing to $1.3 billion in 2014, from $548 million in 2010.