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Mood Targeting; Mobile Devices Lead the Way for AVOD

ExchangeWire Research’s weekly roundup brings you up-to-date research findings from around the world, with additional insight provided by Rebecca Muir, head of research and analysis, ExchangeWire. In this week’s edition: Mood targeting; Mobile devices lead the way for AVOD; Disengaging app users; and Google and Facebook maintain dominance.

Mood targeting

Reaching consumers when they’re in the right mood could increase the impact of digital advertising by as much as 40%, according to new research from Yahoo. 

US and UK consumers are ‘upbeat’ 46% of the time – the most common mood. Crucially, the research found that when these consumers are upbeat they are 24% more receptive to content in general, but 40% more likely to be receptive to digital advertising specifically.

When consumers are upbeat, they are 30% more likely to engage with native video content than in other emotional states. They’re also 28% more likely to engage with content marketing, and 21% more likely to engage with direct marketing.

A consumer’s mood was found to have almost the same effect on their likelihood to engage with digital ads as what they are doing at the time. While 71% of consumers would click on or read digital ads if they better reflected what they were doing at the time, two-thirds (67%) would do the same if they better reflected how they felt.

Mobile devices lead the way for AVOD

Mobile devices attract the most views for AVOD services with global distribution, according to Ooyala’s Q4 2016 Global Video Index.

Globally, mobile devices, an accumulation of smartphones and tablets, represent 56% of all AVOD video views. Smartphones make up the bulk of AVOD consumption at 45%, slightly ahead of desktops at 44%, with tablets taking the remaining 11%.

As of Q4 2016, mobile viewing now makes up 54% of total global video plays, up from 46% one year ago. In November 2016, mobile devices hit 56% of all video views, and in December it grew to an impressive 58%. Based on this growth, Ooyala expect nearly 60% of all video views to be on mobile devices by Q1 2017.

Long-form content, too, continues to grow on mobile devices, representing 47% of all mobile plays in Q4, outpacing short-form video plays at 40%.

Disengaging app users

Two-fifths (40%) of mobile app users report seeing the same in-app ad every day, according to a study by Fiksu. This is leading to ad fatigue when brands get careless with targeting.

What’s more, half (50%) say they see ads that are almost never relevant to their needs or preferences. This is bad news, considering more than three-quarters (77%) will delete an app if they repeatedly see the same irrelevant ad.

There is still hope for marketers looking to reach and engage consumers in-app, however. Millennials are 26% more likely to click on mobile ads than the rest of the population; and nearly a quarter of mobile users said they downloaded a new app because of an ad they saw on their phone.

Google & Facebook maintain dominance

US digital ad spend will reach USD$83bn (£68bn) in 2017, representing an increase of 15.9%, according to eMarketer’s latest forecast.

Google will maintain their dominance and account for 40.7% of US digital ad revenues in – more than double Facebook’s share. eMarketer expects Google’s share of the search market to grow 16.1%, to USD$29bn (£24bn) in 2017. The search giant will claim roughly 78% of total US search ad revenues this year.

As Google dominates search, Facebook rules display. The social network’s US display business will jump 32.1% to USD$16bn (£13bn), capturing 39.1% of the US display market, taking share away from Google, Yahoo, and Twitter. Meanwhile, Google’s display business will rise to USD$5bn (£4bn), but their share of the display market will drop to 12.5%.