After ten years of YouTube, what does the next ten years look like?

If you've been following our blog recently you’ll notice we’re excited about all things native, especially off the back of our recent publisher partnership agreements.

In fact, we think it’s the future of mobile video advertising. This is particularly appropriate given that this year is the tenth anniversary of YouTube. Yes, via mutant giant spider dogs, bitten fingers and K-Pop, we’ve gone from a world without YouTube to one where it’s the juggernaut of video consumption.

We think that YouTube could be rightly be said to have defined the past ten years of video advertising. But this has been through standard formats such as pre-roll. The next ten years are, we believe, going to be dominated by mobile native video advertising.

Video simply because we, as human beings, respond to it. This isn’t just anecdotal, it’s what Dr Simon Hampton, resident psychologist at the IAB, has been pointing out recently. We just prefer images to text, because we were born that way. It’s why we remember Meerkats, or, more latterly, Money Supermarket’s ‘Epic Strut’. Mobile for similar reasons – we like tactile interfaces, just to hold things and use them with our hands. And native because it just works, with click-through rates of up to ten times higher and uplifts in brand affinity and purchase intent when compared to other formats.

Our CEO and co-founder Stephen Upstone has written about this at [PUBLICATION] so hop over there to read what he has to say…



Mary Meeker Internet Trends 2015 – Key Takeaways

The overwhelming takeaway from the annual Mary Meeker Internet Trends 2015 report, that now spans almost two hundred slides, is that mobile now dominates and all analysis points to continued growth overall. Another interesting takeaway is that the top ranked companies in the world (Apple, Facebook, Google etc.) are platforms that leverage network effects from developers to grow their businesses.

For those of you that have not yet determined what this means specifically for mobile advertising, we’ve summarized the main points below and what it means for the space.

1/ Time spent on mobile devices – mobile is overtaking all other media

North Americans now spend more time using mobile devices than any other digital media. Mobile devices are now the main channel for content consumption overtaking TV and desktop internet.

This should trigger brands to rethink their marketing communications and use of technology to acquire and retain consumers. That could represent a major shift in the way companies do things and rethink third parties and agencies brands work with.

2/ Mobile ad spend – strong growth head

Time spent on mobile devices still over indexes relative to mobile ad spend by 3 times. In USA alone, the mobile advertising opportunity gap in revenue terms is $25 billion. The report also highlights overspend on traditional media like print where time spent by consumers is shrinking; this highlights brands and agencies adjusting media plans with changing consumer behaviour.

The analysis on time spent and ad spend by media channel highlights the need for brands to adjust and better align their marketing communications with the channels used by their customers.

3/ Ad formats – video is king

What’s clear from the analysis, is that it’s the big internet players that are driving innovation around mobile video and native ad formats.  These include big app players like Pinterest, Snapchat, Facebook and Google, which have massive global installed user bases and can turn on new ad formats immediately and make them available to hundreds of millions of consumers worldwide.

The key to building out the mobile advertising ecosystem will be adoption of video and native ad formats that have massive scale globally. Given the success of Facebook’s mobile advertising business to date, these formats are likely to trigger more brand spend and potentially close the ad spend gap.

4/ Mobile commerce – buy buttons now showing up

You may not have already noticed them, but buy buttons are starting to appear in ads (Facebook, Twitter) and functional apps (Google search, Pinterest).

Adding ‘buy’, ‘discover’, ‘wish list’ buttons across the top global apps opens the doors for brands to pour advertising dollars into mobile commerce to drive more sales.

5/ Reaching consumers – generations are ignoring TV

In addition to consumers spending more time on mobile devices versus other media, Generation Y and Z demographic cohort groups are spending time less time watching TV. These groups are growing up with connected to mobile devices and getting hard to reach via traditional media.

Generation Y (born between 1980s – early 2000s ) now represents the largest workforce in the US population and future spending power. This highlights a critical need for change on the agency and brands side.

Generation Z ( > 2000s ) represent the future, this groups is growing up hooked onto Pinterest, Instagram and Snapchat and highlights the need for strong visual and video marketing communications.

6/ Asia is booming – mobile-first continent

The next Facebook will probably not come from Silicon Valley, but Asia. Some countries in Asia, like China, are skipping desktop and jumping into mobile-first countries. China has the largest population in the world, more that half of the top ten global app companies are Chinese and China now has the third largest handset manufacturer that many of us may not yet have heard of – Xiaomi.