Flipboard is joining Facebook and Spotify, among others, in embracing video ads on its platform this year.
The four-year-old company, which claims 100 million users, is launching the new ad unit on Monday with eight brands: Sony Pictures, Gucci, Lufthansa, Jack Daniels, Principal Financial Group, Woodford Reserve, Conrad Hotels & Resorts and Chrysler. The ads will be muted by default and won't be auto-play, as Facebook's video ads are. Each video ad features a play button that expands to full-screen with audio when a user clicks on it.
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Here's a look at a few of the new ads:
There is no mystery behind Flipboard's move. As the company's head of advertising, Christine Cook, explained, more people are watching videos on mobile devices, and "video shows strong consumer engagement."
eMarketer predicts strong growth over the next few years for video ads on mobile and other digital formats:
While digital video ads are still a proportionally small segment of the market, rates are much higher than those for traditional digital ads, like banners. A 2013 report from Credit Suisse estimated the average rate for video ads at around $25 for 1,000 users, which is five or 10 times the rate for banners.
By suppressing auto-play though Flipboard is limiting potential click-throughs. At the same time, it's running less of a risk of alienating and annoying readers. The company is toeing the line between both by labeling the effort a pilot and launching with a limited number of advertisers, which is the industry's standard method of adding new ad media.