Executive Summary

Driven by mobile video ads, US mobile ad spending will outstrip all traditional media ad spending combined by 2020, according to our latest forecasts. Mobile video ad spending in the US will nearly double over our forecast period, going from almost $16 billion this year to almost $25 billion in 2022. Nine out of every 10 dollars spent on mobile video ads will be transacted programmatically in this timeframe. Brand marketers looking to divert TV dollars to mobile have new formats to experiment with, including 6-second, nonskippable, vertical and rewarded video ads, which give viewers more control of their ad experience by trading their attention for something they value.

How much will US advertisers spend on mobile video ads?

We estimate that US mobile video ad spending will total $15.93 billion this year, with that figure swelling to $24.81 billion by 2022. That increase reflects a larger trend of mobile advertising commanding a growing share of digital ad dollars in the next few years. We project that by next year, more money will be spent on all types of mobile ads than on all traditional media ads combined in the US.

What’s driving the increase in mobile video ad spending?

For one, there are more mobile video content viewers. We project that the number of US smartphone video viewers will reach 187.7 million in 2019, with their ranks growing to almost 205 million by 2022. In addition, time spent watching mobile video is creeping upwards, with US adults expected to spend an average of close to 30 minutes by 2020. And advertisers are just going where the eyeballs are.

What’s a rewarded video ad, and what do I need to know about it?

A rewarded video ad, or value exchange ad, is an opt-in video that gives the viewer some type of reward when the ad is viewed to completion. The most prevalent use case for these ads is within gaming apps, where players are given some type of gaming asset—a power up, some coins, an extra life, etc.—after watching the ad. But these ads can also offer other types of rewards, such as video or audio content on a streaming app or a discount for a brand’s retail site. And because they offer high completion rates, they’re beginning to migrate outside the confines of gaming apps.

WHAT’S IN THIS REPORT? This report provides an overview of US mobile video ad spending figures and takes a look at what’s driving its growth. It also examines a few new mobile video ad formats and units, specifically the rewarded video ad (also called an exchange value ad), the 6-second ad and the vertical video ad.

KEY STAT: US mobile video ad spending will come very close to hitting $16 billion this year. The annual growth rate for mobile video ad outlays will remain in the double digits through our forecast period. And by 2022, mobile video ad spending in the US will total nearly $25 billion.