Mobile Video Ads — The Centerpiece of Any Effective Ad Monetization Strategy

Mobile Video Ads — The Centerpiece of any Effective Ad Monetization Strategy

Mobile video ads are the format of choice for publishers, advertisers, and even users. Drive revenue and enhance your monetization strategy by utilizing them more effectively.

Of all mobile ad formats, video advertisements are among the most engaging thanks to their diverse creative potential. Videos are consistently embraced by smartphone users of all demographics, whether for entertainment or redeeming a rewarded ad. They’re also the centerpiece of any comprehensive mobile advertising, with 92% of marketers stating that video is an important part of their marketing strategy. and any publisher is well-advised to implement video placements as a part of their monetization strategy.

In this article, we’ll discuss mobile video ads, the different sizes and forms they take, and the best practices to maximize revenue and engagement.

What are mobile video ads?

What are mobile video ads?

Mobile video ads are advertising units that leverage video footage as a core component. As a close relative of mobile display ads, video ads are a flexible fit for all form factors including banners, MRECs, and full-screen interstitials. Audio can also factor into the development of strong mobile video ad creative, but many advertisers work to build creative that can engage audiences without it, as some publishers opt to mute non-rewarded ads until users decide to engage with the placement.

Leveraging video within ad formats that traditionally use static imagery is a great way to stand out and unlocks a world of creative potential for advertisers. When using video assets in banner or MREC form factors, mobile video ads can be refreshed or replaced after a period of inactivity, allowing for a greater opportunity to capture audience attention.

Furthermore, when deployed in full-screen interstitials, video advertisements can be paired with a variety of rich media end cards to create a clear and compelling call to action for users. Because they leverage modern web technologies like HTML5, the possibilities of what can be achieved with custom end cards is practically limitless.

Why use mobile video ads?

Why use mobile video ads?

Compared to all display formats, videos are consistently eye-catching, dynamic, and memorable for most users. What’s more, advances in digital technology make it easier to produce and deploy video ads than ever before. Study after study proves that most users — across almost all regions and app categories — prefer mobile video ads over static banners and interstitials.

Mobile content’s overall rise to prominence across the entire web suggests that audiences are simply more engaged by a medium that allows for the creative interplay of sound, motion, text, and in some cases interactivity. For those willing to put in the work, it allows brands, products, or services to illustrate their value proposition in exhaustive detail, which is good news for everyone involved.

How much do mobile video ads pay on apps and mobile games?

How much do mobile video ads pay on apps and mobile games?

In the U.S., mobile video ads earn anywhere from $2.00 and $13.00 for every 1,000 impressions served, with revenue typically being higher on iOS than Android. With these numbers, it is no surprise that video is a cornerstone of modern mobile advertising.

Depending on your category, chances are that video ads contribute a significant portion of your app portfolio’s overall revenue — not just ad revenue. Mobile games are the greatest beneficiaries of this trend, with over 50% of all revenue coming from ads, while other app categories earn anywhere from 25-40%.

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What are some best practices
for mobile video ads?

With so many publishers and advertisers leveraging mobile video, it’s crucial to take action and ensure your placements stand out to users. Here are some vital best practices to keep in mind:

Use strategic placements

Highlight engagement opportunities

Because ad networks and platforms don’t differentiate between static and video ads when it comes to filling ad requests, publishers typically cannot choose whether a video or static ad will be served in a video-enabled placement. However, they can optimize placements to avoid disrupting the app experience.

For example, publishers can deploy MRECs as interstitials or within a scrollable content feed. To maximize mobile video ad revenue, make sure to enable video containers when suitable so ad partners can take advantage of them.

Focus on one advertisement at a time

Scale reward values

When a banner ad deploys on top of a video interstitial, it lessens the impact of both placements. It splits attention and generally delivers a poor user experience that can actually hurt core performance metrics like retention. Instead, conduct A/B tests to determine which placement is the most effective for your core audience to help them focus on one at a time.

Consider rewarded video ads

Demonstrate the value of IAPs

Mobile video ads have been found to drive greater results for publishers (and advertisers) when deployed through the value-exchange implementation commonly known as “Rewarded Video Ads.” With few extra moving pieces, ad network SDKs can send callbacks confirming that ads have been viewed to completion, which can be used to trigger reward payouts to the user. These can include fungible assets like virtual currency or mechanical benefits like the ability to read more articles in a media app. By delivering video ads through an opt-in exchange, publishers can drive even more revenue while enhancing user engagement with their apps. Read our rewarded video ad guide for more details.

Produce videos in multiple resolutions

Scale reward values

Smartphone displays use a broad range of video resolutions, so your mobile video ads must as well. The IAB recommends using the following resolutions to target the maximum range of devices and online connections:

Low resolution, or standard definition: 640 x 489
Medium resolution: 1280 x 720
High resolution, or high definition: 1920 x 1080

Consider vertical video ads

Demonstrate the value of IAPs

Smartphone users hold their phones vertically approximately 94% of the time. By orienting mobile video ads to this vertical perspective, advertisers can see higher video completion rates. While horizontal ads certainly have their place — especially when watching horizontal video streams — advertisers should consider creating vertical video assets as a part of their campaign.

Aim for short and concise

Scale reward values

Mobile video ads are engaging by default, but they can wear out their welcome. The ideal video length is 15 seconds or less, and every second over that limit reduces completions and engagement. If you’re not sure what video length is optimal for your target demographic, conduct A/B tests and optimize for user engagement.

Don’t rely on sound

Demonstrate the value of IAPs

Mobile users often have the sound on their device muted. To account for this and ensure maximum accessibility, consider using subtitles or simple background music rather than relying on voiceover alone.

Always test and optimize ad creative

Scale reward values

Just because users prefer mobile video ads doesn’t mean all video creative is equally appealing. Use A/B tests to optimize your messaging and brand imagery, particularly for creative intended to target specific audiences.

Mobile video ad examples

Mobile video ad examples
Mobile video ad examples

Master your ad monetization with a network that supports premium platforms

It’s hard to go wrong with mobile video ads, but publishers still need ad partners who can optimize and leverage them effectively. With Vungle’s lightweight, powerful SDK, we supercharge your monetization strategy by delivering premium advertising experiences that drive revenue and excite users.

Our dedicated team of app monetization experts works directly with supply partners to find the ideal video placements for your app category, helping you gain the highest possible return on your investment. Contact us today to get started!