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Mobile audiences key for video consumption, ad growth

Ooyala, a Telstra subsidiary and specialist in video publishing, analytics and monetisation, has released its Q1 2015 Global Video Index, revealing mobile devices made up 42 per cent of all online viewing during the quarter. In particular, smartphones are driving the majority of mobile viewing growth, receiving four times more plays than tablets during the quarter. The report also shows TV broadcasters, compared to publishers and brands, lead the trend with more than half of all views on mobile devices, and illustrates how more video advertising is also shifting from PCs to mobile devices.

In addition, for the first time the Global Video Index shows the impact of personalised content recommendations on viewer engagement and revenue opportunities, as well as emerging trends in programmatic trading between premium content providers and advertisers.

The Growth of Mobile Viewing and Monetisation

The report highlights the profitability potential to build content strategies around mobile as it continues to grow more rapidly than any other viewing option. In Q1 2015, plays on tablets and smartphones together increased more than 24 per cent, 100 per cent since Q1 2014 and a stunning 367 per cent increase over the past two years.

Of note, TV broadcasters prove to be the most savvy, taking advantage of the revenue potential tied to mobile viewing. Regarding advertising, when an ad starts on a tablet for broadcasters the viewer completes the ad 89 per cent of the time, while smartphone users complete ads 79 per cent of the time. Further, in Q1, TV broadcasters saw 53 per cent of their content plays on mobile devices, compared to 31 per cent for publishers and for brands.

The growth of mobile and tablets this quarter supports the prediction that viewing will make up 50 per cent of all online viewing before the end of 2015.

The Case for Content Recommendation

This report shows the opportunity for content providers to personalise their experiences, increasing engagement and ultimately revenue. Tracking Discovery starts ratio, the success rate of how often recommended video is actually played, Ooyala finds that consumers will view recommended content as often as 50 per cent of the time. Breaking down into verticals, the report shows:

  • Among news broadcasters, the Discovery starts ratio was 33 per cent to 44 per cent
  • For sports broadcasters, it was 40 per cent to 53 per cent
  • For consumer publishers, the Discovery starts ratio was at least 33 per cent and as high as 58 per cent

Increased Confidence In Premium Programmatic

The report identifies trends that signify industry progress towards more programmatic trading. In Q1 2015, Ooyala saw that Deal ID Transactions, the identifier used to facilitate programmatic private marketplace transactions, among broadcasters and premium publishers, grew 79 per cent month-over-month between January and March. This is a testament to premium content owners automating their direct sales through programmatic and their increased confidence in this form of trading.

“Our data is indicative of the rapid pace of change in consumer viewing behavior, which creates new challenges and opportunities for content producers, service providers, and advertisers,” said Jay Fulcher, chief executive officer of Ooyala.  “We’re seeing a confluence of major trends that are reshaping audiences on a massive scale – in particular, ubiquitous TV-capable mobile devices, and a major influx of premium content streaming to, and in many cases produced for, over-the-top services. A mobile-first mentality with a keen eye on personalisation has never been more important.”

Additional Highlights:

Online Viewing:

– Content from broadcasters played more than 53 per cent of the time on mobile devices compared to 47 per cent on PCs, a major shift in the distribution of video play likely driven by younger viewers, Millennials in particular

– During the first quarter of 2015, mobile plays outpaced tablet plays by more than four to one, with 34 per cent of all plays occurring on smartphones and only 8 per cent on tablets

Online Advertising:

– 89 per cent of all ads started on tablets and PCs for broadcasters are completed, with 79 per cent for mobile devices

– Publishers saw slightly lower completion rates: 73 per cent for PC, 71 per cent for mobile and 67 per cent for tablets

– PCs continue to have the highest ad fill rates for publishers (77 per cent) and broadcasters (64 per cent)

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