It's no secret that smartphones and tablets are now nearly ubiquitous, and that more and more video is being consumed on them. For example, Ooyala recently said that 34% of all video plays were on mobile devices in Q4 '14, which was up from 6% just 2 years prior. Meanwhile, YouTube's CEO said last Fall that 50% of its views are on mobile and its head of content said about its product development focus, "It's all mobile, mobile, mobile."
All that mobile video usage is now starting to heavily impact how video is created and monetized. While mobile video has always been shorter-form than desktop, a key creative influence over the past year has been Facebook's insertion of audio-off autoplay video in users' news feeds. Last week Fortune provided a lot of context for what's behind Facebook's 4 billion views per month. Then, in an insightful post, Newsbound's Josh Kalven pointed out how audio-off is leading content creators to adopt readable video formats.
Kalven provides several examples, from NowThisNews, Vox and Fusion, where phrases and sentences are overlaid on video and images, allowing the viewer to absorb the stories without hearing anything at all. Kalven sees the approach as a throwback to popular newsreels of nearly 100 years ago. NowThisNews in particular seems to have cracked the mobile video nut, as its video views have surged from 1 million per month a year ago, to 200 million per month in May '15.
No surprise, all that mobile video usage is directly leading to a surge in mobile video ad spending. Last week, eMarketer released its latest estimates, forecasting mobile video advertising will account for $2.62 billion, or approximately 33.7% of overall video spending in 2015. By 2019, eMarketer sees mobile video advertising jumping to $6.86 billion, or nearly half of the $14.38 billion in projected total video spending.
As with content providers, auto-play and audio off are also spurring advertisers to adapt their creative approaches. As explained in today's WSJ, brands including Ben & Jerry's, Heineken and Capital One, along with numerous agencies, are now intensely focused on making the first few seconds of their ads compelling enough to grab viewers' attention as they scroll news feeds in Facebook and soon Twitter, Snapchat and elsewhere.
Add it all up and we're witnessing the start of some pretty profound shifts from the traditional world of TV advertising. Content providers and advertisers are realizing that as mobile devices become more central to users' lives, it's no longer sufficient to simply repurpose from other mediums; rather they need to completely reinvent.
To learn more about mobile video and mobile video advertising's big impact, join us at next week's Video Ad Summit in NYC. Mobile will be the focus of our "Small Screens, Big Opportunities: Why Mobile Video is Skyrocketing" with executives from Viacom, Reuters, MEC and Beachfront Media, with Michael Sebastian from AdAge moderating. Learn more and register now!