Smartphones are not only changing the way people communicate and get work done, but they are also changing the way advertisers reach their audience.
A new report by research firm eMarketer estimates the number of smartphone video viewers will grow to 87 million people by 2014 from current levels. If those projections hold true, that would constitute a quarter of the population of the United States.
Because of the growing popularity of smartphones and tablets, advertisers have shifted focus to target those users. Ad spending on mobile video is set to reach $518 million this year, more than doubling the amount spent in 2012. Projections by eMarketer expect that growth to continue in coming years, with ad spending reaching $925 million in 2014 and close to $1.5 billion in 2015.
"Growth rates for mobile video ad spending will be far greater than for any other related channel — television, online or total digital," the eMarketer report said. "However, it’s shortsighted to assume that this year’s triple-digit growth means mobile video is becoming the dominant video ad format."
Additionally, advertisers have been focusing on reaching mobile device users because of the time spent on those devices. On average, mobile users spend five hours and 20 minutes watching video on a mobile phone, according to Nielsen. However, mobile users ages 12 to 17 and ages 18 to 24 all spend above-average time they spend consuming video on mobile.
"Mobile’s not going anywhere," said George Haynes, social and digital media manager at Kia Motors America in an eMarketer report. "We see it as the most personal connected device that people have. In a lot of ways, it’s just up to us to figure out how to connect in the right way."