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Ooyala, a specialist in video publishing, analytics and monetisation, has released its Q2 2015 Global Video Index, revealing 49 per cent of all ad impressions for publishers were on mobile devices during the quarter, an 11 per cent increase from Q1 2015. Further, the report shows 44 per cent of all online viewing is now on mobile devices. Together, the trends suggest advertisers are shifting ad money to match the influx of mobile viewing and to serve a new generation of TV viewers more comfortable watching content on mobile devices.
The Index also highlights growth in both effective cost per thousand impressions (eCPMs) and revenue for European broadcasters trading inventory programmatically.
Mobile Viewing Continues To Climb
Since Q2 2012, mobile viewing has grown at an annual compound growth rate of 111 percent, peaking at 44 per cent of all online viewing in Q2 2015. This growth represents a stunning 844 per cent climb since 2012. This is the first quarter mobile viewing hasn’t increased at a double-digit rate. Signs point to double digit year over year growth, however. ZenithOptimedia, a global media services network, expects global online viewing to grow by 23 per cent in 2015, and another 20 per cent in 2016, and attributes the majority of growth to mobile viewing as smartphones and tablets penetrate global markets.
In particular, the Ooyala report shows that smartphones received eight times more plays than tablets this quarter. Ooyala’s data suggest that by year’s end 50 per cent of all online video starts will be on mobile devices as smartphone screens become larger, viewers increasingly watch long-form premium content, and more mobile operators package premium content into their services.
Programmatic Proves Profitable In Europe
The report further indicates the continued growth of programmatic trading among premium broadcasters and publishers, as demonstrated by a sample of more than 40 European broadcasters using Ooyala Pulse SSP, its programmatic trading technology. From the beginning of March 2015 through June 2015, these companies saw their eCPMs increase more than 25 percent on average, while their collective programmatic advertising revenue grew 119 per cent.
The growth is accredited to the increase of programmatic direct deals. Deal ID transactions, which allow for one-to-one deals in a programmatic environment, grew at a monthly rate of 79 per cent in Q1 2015, and in Q2 deal IDs grew more than two times that rate, at 176 per cent. Also in June 2015, eCPMs from programmatic direct deals were more than double those traded via marketplaces. This demonstrates that large brands and advertisers are more comfortable purchasing premium video inventory in private programmatic settings. In fact, eMarketer expects programmatic direct deals to reach $8.57 billion in the U.S., representing 42 per cent of all programmatic ad spend by 2016.
“It’s all about mobile. From the array of devices on which we watch TV to the way the industry has begun to treat ad inventories, all signs point to mobile as the key to a bigger, better TV business,” said Principal Analyst Jim O’Neill of Ooyala. “This quarter’s growth of broadband subscribers and the corresponding loss of pay-TV subscribers, paired with the increase of digital ad spend by brands and agencies is the evidence that business models, budgets and strategies from broadcasters to advertisers are changing dramatically to align with viewer behavior.”
● Online Viewing:
– Mobile phones (32 per cent) remain a popular screen for watching short-form video in lengths of 1-3 minutes, although PCs (32 per cent) appeared to be equally as popular.
– When it comes to longer-form content of over 10 minutes in length, views by device were more even. Tablets (57 per cent) and connected TVs (53 per cent) saw a slightly higher percentage of views, followed by desktop (40 per cent) and mobile phones (33 per cent).
● Online Advertising:
– Broadcasters streaming long-form premium content continued to see ad completion rates at and above 90 per cent, depending on the screen. Tablets delivered rates exceeding 92 per cent and PCs remained above 90 per cent.
– PCs had the highest fill rate for publishers, 92 per cent, up from 77 per cent in Q1. Broadcasters, meanwhile, saw PC fill rates increase to 67 per cent from 64 per cent.
– Broadcasters also saw fill rate climb on mobile devices, with a fill rate of 74 per cent for mobile phones and 70 per cent for tablets in the quarter, up from 54 per cent and 57 per cent in the previous quarter. Publishers saw rates of 89 per cent and 88 per cent, up from just 55 per cent for mobile phones and 56 per cent for tablets.