The mobile video ad space has really taken off this year, with new data showing that spending on mobile video advertising has almost tripled over the past two years.
A new report from AppLovin and AppsFlyer found that mobile video is the fastest growing advertising format (190 percent growth in the third quarter of 2015). Video ad spending grew from 23 percent of total ad spending to 66 percent in the first three quarters of this year.
For the report, AppLovin and AppsFlyer analyzed their combined data and focused on video ads as a total percentage of their advertisers' spend, over a network that processes 100 TB of data a day and hundreds of millions of dollars of advertiser revenue annually.
Video ads are very effective for visual offerings such as apps, according to AppsFlyer.
"Videos ads are able to demonstrate what an app is truly like way more effectively than a text ad or a static display ad," Ran Avrahamy, head of marketing at AppsFlyer, told VentureBeat. "It gives the user a chance to see the app in action and get a good sense of its graphical movements, its gameplay, or whatever its best features are."
Mobile video ad spending more than doubled from 2013 ($720 million) to 2014 ($1.5 billion), according to VentureBeat, and is predicted to reach $6 billion by 2018—putting mobile at about half of all online video spending.
Marketers can expect mobile video ad performance to reach new heights as publishers find new ways to engage audiences with the content.
"Any innovation will come mostly from how publishers choose to integrate video," Avrahamy told VentureBeat. "We are already seeing things like new native placements, which offer a far more engaging and seamless way to engage with the content, in addition to direct-play videos and video-like features such as animated gifs, motion-driven ads."
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