New Ad Exchange Delivers Mobile Video

Expect in-app commercial interuption

Get ready for more in-app messages like this: “and now a word from our sponsors,” as ad company Vungle today launched an in-app video ad exchange that will serve commercials to smartphones.

The 15-second video spots are meant to seamlessly interject into apps during breaks in the action, such as after a player loses a life in a game. The Vungle Exchange lets brands control their video ad campaigns with programmatic tools across 4,000 apps.

Digital video is a growing segment in the $31.5 billion mobile advertising market, according to eMarketer. However, studies in the U.S. have found that commercials on smartphones are big turnoffs.

EMarketer said in a recent report that only 12 percent of U.S. mobile users prefer video ads as opposed to say, banners, which are more easily ignored.

One reason for user discontent, however, is that videos could stall and load slowly. Vungle said it solved the latency issue, serving video ads in the blink of an eye.

Mobile digital video advertising is an attractive market, and even Rovio will start serving such ads in Angry Birds, offering in-game rewards for users to watch the commercials.