With The Launch Of iPhone 6, Mobile Video Advertising Could Skyrocket

ashkumar“Data-Driven Thinking” is written by members of the media community and contains fresh ideas on the digital revolution in media.

Today’s column is by Ash Kumar, CEO and co-founder of TapSense.

As rumor and speculation build around the new iPhone 6, we in the mobile industry can hardly wait for Apple’s announcement on Sept. 9.

The new iPhone is rumored to come with a larger screen size, higher resolution and faster processors, all of which will be a boon for the mobile video market. The iPhone 6 will also come with the iOS 8 operating system, with more than 4,000 developer APIs.

How might each purported feature impact app developers and marketers?

The Ultimate Media Consumption Device

When the iPhone 5 was released in 2012, it was clear that Apple was willing to adapt its iPhone design based on changing consumer behavior and competitive pressures. Apple’s own research shows most of the growth in the smartphone market is coming from larger screen devices. It is likely that Apple is again going to bump up the screen size from a 4-inch diagonal screen size, possibly to 4.7 inches and 5.5 inches with new iPhones.

Though the exact screen resolutions to expect have been a matter of heated debate within the industry, we can bet there will be a dramatic increase in the iPhone 6 screen resolution relative to its predecessor. This will lead to sharper and denser screens, which will result in a dramatically improved end-user experience for media consumption, including photos and videos.

With consumers spending most of their time with media on mobile apps, it would be a smart and strategic move by Apple to position iPhone 6 as the ultimate media consumption device.

Bigger, Better Screens

More than 40% of YouTube’s traffic comes from mobile devices. Combined with the iPhone 6 upgrade cycle, bigger and sharper screens, and growing consumer adoption of mobile video, I believe the new iPhone will catalyze the growing mobile video advertising market.

Video advertising platform TubeMogul recently reported a big increase in mobile video auctions on its platform. Mobile video advertising is growing rapidly, but is still a nascent market compared to banner ads and interstitials.

Here is how I think iPhone 6 can make a big impact on the market and make it mainstream:

  • App developers will get rid of banner ads and instead move to bigger ad units such as video, interstitials and native ads to take advantage of the larger screen size in iPhone 6.
  • Video, interstitials and native ad units’ CPMs and click-through rates are already 10 times more effective than banners and we expect them to be even better with bigger screen sizes.
  • Larger screens will provide a bigger palette for creative agencies and brands to convey their message as opposed to banner ads.
  • Fifteen or 30-second videos on mobile provide an ideal environment for a brand to connect with a consumer.
  • As app developers get ready to update their apps for iOS 8 and iPhone 6 screen sizes, they should definitely consider ad units, such as video and interstitials, that enhance user experience as well as significantly increase monetization potential. Video advertising, especially on a 4-inch-plus screen, will make banner ads a thing of the past.

All in all, Apple’s long-awaited iPhone 6 and iOS 8 release couldn’t come at a better time. With the rumored faster processors and larger, higher-resolution screens, the new iPhone could usher in a golden era of consumer media consumption that both developers and brands should leverage.

Follow Ash Kumar (@ashwani), TapSense (@tapsense) and AdExchanger (@adexchanger) on Twitter.

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