- Ad company Vungle has announced the launch of an in-app mobile video ad exchange.
- The exchange will deliver 15-second, TV commercial-like video ads to smartphones during breaks in action — like between the levels of a game, for example.
- Vungle is entering a booming mobile advertising industry that is valued at $31.5 billion.
The biggest problem Vungle will face with in-app video ads is the chance the move could turn-off of mobile users. Many users may not want to sit through 15-second videos when they access an app, and that could mean user loss for Vungle's client apps. If the videos are delivered quickly — as Vungle claims they are — the backlash could be lessened. Despite user annoyance, advertisers are likely to invest in mobile video ad exchanges like Vungle in the future because video is harder to ignore than banner ads.