Guest Post: Video advertisements will drive data growth in previously bandwidth-light apps in 2014

by Mark Davis, senior director of product marketing, Citrix

Mobile Advertising has already seen significant growth with three out of ten mobile subscribers served ads. However, whilst to date users have typically been twenty times more likely to be served an image-based ad compared to a video ad, the impact of these video ads is ten times that of its image-based counterpart. As video advertising becomes more commonplace on social networks, so the volume of video traffic will be driven up. I predict that in 2014 video ads streamed to mobile subscribers will double the volume of data produced through mobile advertising. Plus the launch of video ads on Instagram and Facebook will transform the mobile advertising market and its impact of the mobile network. Here are the rest of my predictions for 2014.

The rise of video ads will provoke new ‘two-sided’ business model partnerships between mobile network operators [MNOs] and the social networks that are hosting the video ads.

For example, MNOs can strike a deal with the social networks to control the quality of delivery of ads in a tiered model depending on how much the advertising party is paying.

“In 2014 network carriers will shift to virtualised networks”

Multi-tasking mobile devices will also open up new opportunities for streamed content services.

The launch of iTunes Radio and the ability of devices to multitask while running streaming music, radio and video content in the background will change how content is consumed through mobile devices and over the mobile network.

Combined with ever more powerful devices and faster networks, consumers will increasingly stream content over new types of services that will proliferate and mature over 2014.

BYOD will lead to new enterprise mobile user cases

As a greater number of companies formalise BYOD policies, they will also look to personal mobile devices as a means of reducing other costs, including using smart phones for building access, etc.

Wearable devices will begin to factor into this trend, with policies extending to incorporate the full gamut of devices available.

According to Juniper Research here, retail revenue from smart wearable devices, including smartwatches and glasses, will reach $19 billion by 2018 compared with $1.4 billion in 2013.

A recent report from Swedish telecom market researcher Berg Insight here predicted that by 2017, companies will ship more than 64 million wearable technology devices.

That includes 35 million smartwatches, a significant bump from the 400,000 that are expected to be sold this year [2013].

Mobile device use in Latin America and Asia will continue to skyrocket and regional carrier networks will be put to the test.

Increased use of the mobile network for internet use will put regional carrier networks to the test.

According to Comscore, Latin America continues to be the region with the fastest growth in its online population, with that figure increasing by 12 per cent between March 2012 and March 2013 to 147 million.

2014 will see significant NFV adoption in carrier networks

In 2014 network carriers will shift to virtualised networks in order to stay more competitive through the timely deployment of new features as well as lowered operating costs.

According to Research and Markets here the_network, Network Functions Virtualisation (NFV) is poised to transform the entire telco infrastructure ecosystem.

Mind Commerce estimates that global spending on NFV solutions will grow at a CAGR of 46 per cent between 2014 and 2019. NFV revenues will reach $1.3 Billion by the end of 2019.

Author biog

Mark Davis is senior director of product marketing for service provider platforms with Citrix.

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