LivingSocial is running mobile video ads within the SongPop application, inspiring users to watch a video with the long-term goal of acquiring new users for its mobile app, explains analyst Nikao Yang, senior vice president of new business development and marketing at AdColony. The video explains how the deal-aggregation site works. "When the video ad view is incentivized and not the download, the long-term value of the user acquired tends to be higher because the user downloads the app based on motivations other than a direct reward for that download," Yang explains.

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