Mobile ad spend accelerating at pace with mobile viewing

Ooyala has released its Q2 2015 Global Video Index, which reveals that 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 dollars 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.

Since Q2 2012, mobile viewing has grown at an annual compound growth rate of 111 per cent, peaking at 44 per cent of all online viewing in Q2 2015. This growth represents 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.

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.

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 per cent on average, while their collective programmatic advertising revenue grew 119 per cent.

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 behaviour.

The report can be downloaded in full here.

www.ooyala.com

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