The programmatic mobile video ad market rose by 230% in the first quarter and is set to outstrip growth in desktop video, digital branding software firm TubeMogul said.

The local programmatic mobile video ad market more than tripled in size in the first quarter, with the amount of available inventory up 230% to 29.4m available ad units.

In the last quarter of 2013 there were 8.9m mobile ad video units available programmatically, the TubeMogul Australia Quarterly Research Report found.

“We expect the programmatic mobile and tablet video ad market to skyrocket this year, and outstrip growth in the desktop video advertising market,” Stephen Hunt, TubeMogul’s Asia-Pacific managing director, said.

Hunt said advertisers are increasing their mobile and tablet video budgets and that ad agency desks are “upping their focus” on executing programmatic campaigns.

“The programmatic mobile video market will grow fast and hit significant scale this year.”

While desktop growth may be outstripped by mobile and tablet, desktop video’s premium market is accelerating.

Premium inventory availability rose by 25% quarter-over-quarter and comScore top 100 video inventory ads increased by 28%.

“This data shows that brands are eager to place their brand messages and video creative in top-tier publisher environments to reach affluent consumers, and drive lift in brand metrics such as purchase intent for their products, It also highlights the willingness of top-tier publishers to make their audiences available for programmatic trading,” Hunt said.

Brands buying video ad inventory direct from the publisher – a practice known as programmatic direct – has more than doubled. The volume of direct inventory traded programmatically hit 68 million, up from 33 million in the final quarter of 2013.

A recent SpotXChange study also found the volume of programmatically traded video ads had increased from 28% to 34%. However the study said transparency and brand safety concerns, coupled with a gap between supply side platforms and demand side platforms could stall growth. 

 

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