Daily Management Review

Native Mobile Video Ads Support For Developers Yahoo's New Strategy to Boost Revenue


Native Mobile Video Ads Support For Developers Yahoo's New Strategy to Boost Revenue
Yahoo plans to boost growth in both its topline and bottom line by enabling mobile developers integrate their native video ads into their apps as users. 
This move by the search engine firm signifies that the mobile devices have become that most used devices that users employ to browse the Internet. It also indicates that the IT giants now accept, at least in principal, that the users spend more time in apps installed on a mobile device than on mobile browsers.

Companies like Yahoo therefore see financial opportunity in the content that the users view on their mobiles while surfing the internet. This aspect of the internet has also caught the fancy and focus of IT companies as they strive to deliver content on a mobile platform to enhance business.
Factors like the proliferation of low cost but high quality video equipment, the increase in Internet penetration and bandwidth and the low storage costs of on-line content  have positively impacted the supply side of user generated video content. Taking note of the growing importance of the digital media on the mobile, many of the traditional media companies that provide premium video content are boosting their on-line presence to capture a shift of viewers moving on-line for streaming digital content.
Broader Internet access and the advent of smart connected devices that include tablets, smartphones and notebook PCs has increased the demand for mobile compatible content. The development of newer video formats has helped in the easy delivery of video content on the mobile for pre-roll and interstitial video ads.

The trend of watching video among the consumers is shifting from the traditional television media to smart devices due to the convenience of choosing what, when and over which medium to watch content and viewers are spending more time viewing videos on-line. Industry forecasts this trend to grow in the coming years and would drive demand and supply for on-line video content.
The advertisers too have started allocating larger sum of money for the digital media and a major chunk of television advertisement revenue has shifted to the on-line platform. Therefore every major firm allocates ad budgets across multiple channels with the allocations for the digital media eating into the allocation for other media.
According to the Interactive Advertising Bureau in the US the mobile ad spending was around $12.5 billion while TV ad spending was $66 billion in 2014. Most of the digital ad spending have come from the growth in video ads for the mobile.
It is here that Yahoo plans to stage a comeback to the forefront in digital space as it is of the view that content is the driving force behind display ad revenue in the mobile internet and affects both users and advertisers. Better engagement in created through better quality of content and personalized information. The mobile browser pie is rapidly shrinking as most of the time spent in browsing on the mobile by users is used by apps.
Yahoo wants to offer ads spots, which can be monetized, on Flurry, which has an RTB platform called the Flurry marketplace that enables automated sales of ads across different ad properties. To improve user experience, Yahoo also plans to combine customized content by developers with bespoke ads.

This strategy would enable Yahoo not only to improve user engagement but also boost the number of saleable ads through Flurry and hence generate dollars. The increased viewer engagement, according to Yahoo, would also translate into into more pages content consumed across apps powered by Flurry as the number of unique visitors visiting the app increases.