Mobile video has higher viewer retention than online video with 94 percent in the first 10 seconds compared to only 81 percent on the PC Internet.

This was the key finding of Rhythm NewMedia?s third quarter mobile video advertising report. It also found that Rhythm?s network grew 30 percent again in the third quarter, outpacing industry forecasts for mobile video.

?Early on the growth was around YouTube and user-generated video,? said Ujjal Kohli, CEO of Rhythm NewMedia, Mountain View, CA. ?Now we are seeing that the premium mobile video sector is growing fast.

?There are lower abandonment rates for mobile video than online video,? he said. ?Also, mobile advertising click-through rates are highest when the call to action is a video.?

Mobile video beats other channels
The Rhythm study found that completion rates for interactive pre-roll video ads remain high at 87 percent, exceeding online video and television.

Additionally, iPad CTRs for pre-roll video ads are higher versus iPhone, iPod touch and Android.

CTRs are 79 percent higher on display ads that mention video as a call to action.

Brands within the consumer product goods and entertainment categories were the leading advertisers in the third quarter, per the study.

?I think we are at the point of an early majority,? Mr. Kohli said. ?2008 was for experimenters and 2009 was the early adopters, with maybe 25 brands on our network doing video advertising.

?Now we have about 125 Fortune 500 brands on our network,? he said. ?In 2011 if you are a big brand and are not on mobile video you are the minority.?

Viewing time is up
Viewing time for full episodes increased 20 percent again in the third quarter.

The study also uncovered that Android devices use 3G more heavily for video compared to iPhones.

IPads have greater evening usage for video, and rely more on Wi-Fi networks compared to iPhone, iPod touch and Android devices.

?Full-length shows are driving mobile video and we are quite excited to see that,? Mr. Kohli said. ?IPads are much more evening-oriented than other devices because they are not exactly a mobile device for everyone.

?With smartphones the usage is spread out throughout the day,? he said. 

Mr. Kohli provided several recommendations for brands considering mobile video advertising:

1. Doing video gets people to like you more. It is immersive advertising. You can use banners and such to get people to click to buy something. But for an emotional impression, video is the way to go.

2. The combination of display and video does really well. Display gets a 50 percent bump up if video is part of the campaign. They work really well hand in hand.

3. If you want someone to engage with your 15-second ad, the best thing is get them to watch a longer video. Branded entertainment works well. For a grand experience, a mobile video ad works well. It shares the same beauty as TV ? everything is full-screen.

Final take
Giselle Tsirulnik is senior editor of Mobile Marketer
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