Flurry is finding that mobile video ads are on a roll, hitting 100 million views in August more than a year after they debuted on iOS (s aapl). Now, it’s taking its AppCircle Clips to Android (s goog), giving advertisers a way to reach consumers on Android devices with TV-style commercial videos.
The AppCircle Clips appear as rich videos that start after a user clicks on a prompt. The videos allow traditional advertisers to reach consumers at a fraction of the cost of TV commercials. And it gives app developers who advertise through AppCircle Clips an effective way drive downloads of their apps.
Simon Khalaf, Flurry’s president and CEO said in a statement that consumers are accepting mobile video ads in a similar manner to TV commercials. That’s turning video ads into a very effective and popular advertising and monetization tool. It also may reflect not only the more engaging nature of video but also the rise of tablet use, which lends itself to more video viewing. We’ll be talking about mobile monetization strategies our GigaOM’s Mobilize conference on Sept. 20-21.
The rise of video ads is important for the entire mobile ecosystem, which needs to be able to monetize at a better rate. Mary Meeker, a partner at Kleiner Perkins, pointed out earlier this year that mobile ads are five times less valuable than desktop Internet ads. Video may prove to be one effective way to close that gap. Flurry said that by using AppSpot to place video ads in their apps, developers can consistently earn eCPMs of $10 or more.
The ads are also effective in driving downloads for app developers and acquiring engaged users. Gaia Interactive, for example, said that consumers acquired through AppCircle Clips used the application 43 percent more often and played 23 percent longer per session than normal users acquired through traditional banner ads.
Closing the mobile monetization gap will take more than just video ads. But there’s a lot of promising tools emerging such as location-based ads and new formats like Pontiflex’s mobile sign-up ads and Kiip’s (see disclosure below) mobile rewards.
Disclosure: True Ventures is an investor in Kiip and the parent company of this blog, Giga Omni Media. Om Malik, founder of Giga Omni Media, is also a venture partner at True.