New Report Shows How Mobile Video Monetization Evolved in 2019

A recent report eMarketer report suggests that mobile video monetization opportunities abound in 2019. And here’s why.

Mobile videos are increasingly getting popular.

In the United States, 8 in 10 smartphone users – a staggering 191 million people – reportedly watch mobile videos. What’s more, an average adult in the U.S. spends 40 minutes a day watching mobile videos, says the report.

Not only are we watching more clips on Facebook and YouTube, but we’re more willing to pay for them. According to eMarketer, people now view more premium content than ever before.

We’re talking about over-the-top content from streaming platforms like Netflix, Amazon Prime, HBO, Hulu, Disney+, among others.

As of 2019, there are 182 million OTT subscribers in the United States. Furthermore, a large number of viewing occurred on mobile devices.

Data from Netflix suggests that 20 percent of viewing occurs on smartphones. Also, at least 50 percent of subscribers log in from mobile devices at least once a month.

It gets better.

Thanks to the recent launch of commercial 5G services in the U.S., mobile video viewing is set to increase. With 20-times the speed of the current network, 5G could usher in AR/VR in OTT video streaming.

This brings us to mobile video monetization. How are mobile video platforms monetizing?

The Current Monetization Models

Depending on the platform, video content providers use one of three video monetization models.

Big OTT players like Netflix and Amazon Prime use Subscription Video on Demand (SVOD). It provides access to unlimited content after paying specific subscription fees.

Transactional Video, on the other hand, on Demand offers is more limited. Users have to pay a one-time fee to download content.

Meanwhile, Advertising Video on Demand, which YouTube uses, has a massive audience. Viewers can watch videos for free, but with ads frequently popping up.

According to eMarketer’s estimate, half of all mobile video ads are served on video platforms – $11 billion in 2019. And YouTube received the most substantial single portion of the ad spends.