The Shift to Mobile Video. Internet Advertising hits $6.4 Billion in Q3 - Sets New Record

Posted by: Tim Reha | Wednesday, November 17, 2010 | 0 Comments | | Share

IAB reports “$6.4 Billion in Q3 2010 Sets New Record for Internet Advertising Revenues”

“The Internet has transformed consumers’ lives and how they experience entertainment, information and brands,” said Randall Rothenberg, President & CEO, IAB. “Marketers have embraced digital media because that’s where they can engage with their consumers. This vibrant, innovative industry is creating jobs and contributing to the growth of the U.S. economy.”

Source: IAB Internet Advertising Revenue Report/PwC (http://www.iab.net)

What is Happening?

Traditionally it has been hard for big ad agencies who control massive budgets to efficiently reach mass consumer audiences with simple to execute internet advertising buys. This is because the internet has created a fragmented digital media landscape where the best inventory is sold out and the market is so fragmented it is very time consuming to build a mass market campaign with reach. The market is consolidating as niche blogs such as TechCrunch are being acquired by larger players like AOL making mass media buys easier. In addition, the internet is growing fast in developing nations across multiple devices such as smart phones and new iPad tablet variants.

Media Ad Spent vs. Ad Spend Still out of Whack!

Morgan Stanley’s, Mary Meeker reports today at the Web 2.0 Summit that there is still a large imbalance on Media Time Spent versus Ad Spend for internet versus traditional media. The slide below shows that this is a $50 Billion global opportunity.

The Media Time Spent Shift to Mobile Video is Massive

We are now in the center of a massive paradigm shift from a “dumb phone” world to a “smart multimedia connect phone” world. The new array of smart phones is being driven by Apple’s iOS and Google’s Android platforms. The new phones have bright, HD level, screens that are also growing in size. This is driving a hugh shift to mobile internet video consumption.

Why is this Important & How to Leverage the New Mobile Video Landscape?

This media shift is important because your customer’s attention is shifting to internet and mobile with a large uptake in video consumption. Thus, it is time to take action. Make sure you have both an iPhone and Android phone to “view” your website from the customer’s prospective.

Does your website have easy to view videos on the most important pages such as the main page, services and about us pages?

Note that Apple iPhones do not support Flash Video so it may be wise to leverage YouTube for hosting your videos or other that work on the iPhone.  There are a number of video production, syndication, SEO and analytics strategies to employ. I will follow up with a few in future blog posts. Contact me if you need help with your strategy.