Ooyala Q1 Global Video Index reveals trends in premium programmatic trading; highlights how personalized experiences boost engagement
SANTA CLARA, Calif. (June 24, 2015) -- Ooyala, a Telstra subsidiary and a leading innovator in premium video publishing, analytics and monetization, released its Q1 2015 Global Video Index, revealing mobile devices made up 42 percent 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 personalized 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 Monetization
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 percent, 100 percent since Q1 2014 and a stunning 367 percent 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 percent of the time, while smartphone users complete ads 79 percent of the time. Further, in Q1, TV broadcasters saw 53 percent of their content plays on mobile devices, compared to 31 percent for publishers and for brands.
The growth of mobile and tablets this quarter supports the prediction that viewing will make up 50 percent of all online viewing before the end of 2015.
The Case for Content Recommendation
This report shows the opportunity for content providers to personalize 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 percent of the time. Breaking down into verticals, the report shows:
Among news broadcasters, the Discovery starts ratio was 33% to 44%
For sports broadcasters, it was 40% to 53%
For consumer publishers, the Discovery starts ratio was at least 33% and as high as 58%
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 percent 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 personalization has never been more important.
Additional Highlights
Online Viewing:
Content from broadcasters played more than 53% of the time on mobile devices compared to 47% 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% of all plays occurring on smartphones and only 8% on tablets
Online Advertising:
89% of all ads started on tablets and PCs for broadcasters are completed, with 79% for mobile devices
Publishers saw slightly lower completion rates: 73% for PC, 71% for mobile and 67% for tablets
PCs continue to have the highest ad fill rates for publishers (77%) and broadcasters (64%)
About Ooyala's Global Video Index
This report reflects the anonymized online video metrics of the vast majority of Ooyala's 500+ customers, whose collective audience of hundreds of millions of viewers spans nearly every country in the world. Ooyala captures 3.5 billion analytics events each day. We ingested and transcoded over 100 million minutes of video in 2014. That content was delivered to over 220 million unique users around the world. And those viewers played over 10 billion streams comprising almost 30 billion hours of video. We managed inventory for 30 billion video ad impressions, and delivered over 11 billion ads in 2014.
About Ooyala:
Ooyala helps deliver content that connects. A US-based subsidiary of global telecommunications and IT services company Telstra, Ooyalas comprehensive suite of offerings includes one of the worlds largest premium video platforms and a leading ad serving solution. Built with superior analytics capabilities for advanced business intelligence and a strong commitment to customers success, Ooyalas industry-leading end-to-end solutions help large-scale broadcasters, operators, media companies, enterprises and brands build more engaged and more profitable audiences, and monetize video and TV with personalized, interactive experiences across any screen.
ESPN, Univision, Sky Sports (U.K.), Foxtel (Australia), NBCUniversal, RTL Gro
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Ooyala Q1 Global Video Index reveals trends in premium programmatic trading; highlights how personalized experiences boost engagement
