Video ads are growing into a new and potentially lucrative business for mobile developers. Developers are already using videos to promote their apps, and video ads for apps can sometimes generate far more interest among viewers than standard banner ads. Further, in-app video ads could also generate some much-needed income for developers who display the ads in their apps. A growing number of vendors, including Vungle and AdColony, have targeted this space for growth, and their initial results are encouraging. Specifically, late last year Flurry said one of the customers of its AppCircle Clips found consumers acquired through video ads used apps 43 percent more often and played 23 percent longer per session than users acquired through traditional banner ads. And Vungle, an in-app ad network that came out of private beta last year, has case studies that show developers generating conversion rates above 0.65 percent with video ads. Special Report.
