global video index -...

GLOBALVIDEOINDEXQ1 2017

2 OOYALA GLOBAL VIDEO INDEX Q1 2017

POINT OF VIEW ···········································································4

HOW THE WORLD WATCHES VIDEO ································· 6

EAST VS. WEST (COASTS): TIME OF DAY & DEVICE USE IN THE US ····························8

TABLET AND SMARTPHONE VIDEO TRENDS ··············· 12

ENGAGEMENT TRENDS ························································· 14

VIDEO ADVERTISING TRENDS ············································ 17

ABOUT OOYALA’S GLOBAL VIDEO INDEX ····················24

TABLE OF CONTENTS

OOYALA GLOBAL VIDEO INDEX Q1 2017 3

The American Customer Satisfaction Index (ACSI) came out in May and, no surprise here, pay-TV services once again scored poorly. Poorly really doesn’t say it all: they were dead last among the 43 industries the ACSI routinely measures. Pay-TV providers scored worse in customer satisfaction than airlines, utilities and banks.

Imagine that.

Pay-TV operators also had their worst first quarter ever in terms of subscriber loss, with more than 802,000 customers cutting the cord, according to SNL Kagan. Q1 traditionally is a strong month, something the industry looks forward to as they brace for second-quarter results that traditionally are the worst in the industry.

The quarterly loss comes at a time when the U.S. added about 150,000 new households, too, which means operators likely are stocking up on Alka-Seltzer.

On the flip side, U.S. operators (primarily cable companies) added nearly one million broadband subscribers in the quarter, as more U.S. households now have a broadband connection than a pay-TV connection.

Where’s everybody going?

The losses in the pay-TV industry have been mitigated somewhat by gains on the OTT front. While Netflix and Amazon remain the “Big Two” in the SVOD field, with Hulu a distant No. 3, operators increasingly are looking to OTT to attract cord nevers and cord cutters, especially Millennials.

And, to a degree, services like Sling TV from Dish and DirecTV Now from AT&T are helping. Combined, they added about 375,000 subs in Q1; AT&T said it’s happy with how its OTT service is being received and Sling TV continues to grow.

But there’s still an issue. Both remain tied to legacy business models, offering bundles of content consumers just don’t find compelling.

And operators just won’t change… which leads to abominable ACSI scores, indefensible subscriber losses and, thus, opportunity for every content owner on the planet.

This is just the U.S., right?

There are a number of reports that suggest the experience North American operators are having is unique. (Yes, Canada is feeling the sharp scissors of cord cutting, too: subscribers were down 2% in 2016.) These reports claim that cord-cutting and cord shaving is not something other regions need to worry about.

But the nature of operators’ engagement with consumers everywhere is changing. Increasingly, consumers are turning to SVOD services as alternatives to their pay-TV world.

An Ampere Analysis study found that 40% of subscribers in North America and Europe now take an SVOD service in addition to a pay-TV service, up from just 24% two years ago. The number of consumers who solely rely on pay-TV has dropped to 30% in Q1 2017, compared to 49% in Q3 2015, and Internet users who only get SVOD services (or supplement free TV services) nearly tripled to 13% from just 5%.

In Germany, for example, nearly one-third of connected households (30%) have SVOD subscriptions. SVOD is growing faster than any other segment of home video with sales forecast at $328.4 million in 2016, according to GfK.

Those figures should serve as a warning to operators to not nod off, or to assume they’re doing enough to keep consumers happy, because consumers who double-up on their TV services (combining Pay TV with one or more SVOD services) are, according to Ampere, twice as likely to be strongly considering leaving their main TV provider in the next six months.

POINT OF VIEWJIM O’NEILL, PRINCIPAL ANALYST & STRATEGIC MEDIA CONSULTANT — US WEST


Is there room in the market for more?

The short answer? Absolutely. While the growth of SVOD services seemingly has created an abundance of content, there’s still significant demand for niche, unique and original content. Original content applies across all services — like House of Cards on Netflix and 1963 on Hulu or Mozart in the Jungle from Amazon. But services without 80 million subscribers also can have original or unique content that is a major driver for SVOD and AVOD adoption; it’s something every content owner needs to be aware of and, frankly, to leverage as quickly as possible.

A recent report from Digital TV Research said although SVOD services like Netflix have seen explosive growth, other SVOD services collectively now have more subscribers than the major players; in Q3 2016, Netflix subscribers globally stood at 86.5 million, but the number of subscribers to other services was 115.9 million.

Mobile will continue to drive much of that growth.

In Q1, Ooyala’s customers saw the amount of time spent watching longer content on mobile devices skyrocket, just as the number of video starts on mobile devices continued to grow.

Of course, there are some headwinds. But, as my Strategic Media Consulting colleagues and I wrote earlier this year in Ooyala’s white paper, Why SVOD Services Fail, success will come to those services — SVOD or AVOD, operator or content owner — that are able to pivot away from their legacy businesses practices and embrace the new pay-TV ecosystem.

After all, the consumer is doing so at an increasing pace.

Are you?


http://go.ooyala.com/rs/447-EQK-225/images/Ooyala-Why-SVOD-Services-Fail.pdf

HOW THE WORLD WATCHES VIDEOContent consumption around the world is anything but uniform. Availability of content, the prevalent type of network to deliver video, the cost and the types of devices available all play a major role in video consumption

We’ve watched the rise of mobile video plays, for example, in every quarter since the Video Index was launched in 2011. In Q1, it reached an all-time record of 56.47%, setting a record for smartphone plays (46.9%) and for tablet plays (9.57%), which made up 17% of all mobile plays.

But not every region followed suit.

In EMEA, mobile plays were at 54%, up from just 42% a year ago. Smartphones have been the major driver of that growth, increasing from 31% in Q1 2016 to more than 42% in Q1 2017. Tablets, meanwhile, made up 10% of plays on all devices a year ago and now make up nearly 12%. But, they made up just 22% of all mobile plays in Q1, down slightly from 25% in 2016, a testament to the growing habit of consuming content on smartphones.

In North America, meanwhile, where connected TV penetration in broadband households now exceeds 69%, mobile remains important to consumers. Mobile plays reached a tad over 50% of all video plays in the quarter, up from 48% a year ago. Smartphone plays remained essentially flat at 39.5% compared to 39% a year ago, while tablet plays grew to 10.5% from 9% in 2016; they now make up 21% of all mobile plays in North America compared to 19% a year earlier.

The Asia-Pacific region, which, along with Latin America, has the world’s highest smartphone penetration rates among Internet users, has seen explosive mobile growth. In Q1, 61% of all video plays were on mobile, up from 46% a year ago. Plays on smartphones reached nearly 49% (from 37% a year ago) and nearly 13% on tablets (from 9% in Q1 2916). As in EMEA and North America, tablets make up 21% of all mobile plays, compared to 20% a year ago.

Latin America, like Asia-Pacific, has seen strong growth in mobile plays. Both regions have been helped by an influx of inexpensive smartphones from China that have helped to expand penetration. Mobile plays topped 56% in LatAm, up from 46% a year earlier. Tablets were at just 5%, the least of any region, and essentially flat over the past year, and plays on the devices made up just 9% of all mobile plays, also the lowest of any region.

THE BOTTOM LINE

Although mobile plays were dominant in every region, the 11% variance between North American consumption at 50% and Asia-Pacific at 61.4% should be a reminder — especially for content owners and broadcasters looking to be global players — that the way content is consumed is far from homogenous.

Make no mistake, mobile should remain an idée fixe when it comes to how you go to market. But, as much as you need to pay attention to the similarities of global OTT consumption, you need to spend an equal amount of time learning about the differences. That’s where data is critical.


SHARE OF PLAYSQ4 2016

60%

20%

40%

0%

PCPHONETABLET

EMEA APAC NORTH AMERICA LATAM


EAST VS. WEST (COASTS): TIME OF DAY & DEVICE USE IN THE USWe spend a lot of time looking at how content is consumed differently in different regions and even in different countries in specific regions. Malaysia, for example, is enormously mobile-centric when it comes to consuming video, far more so than its neighbor Indonesia. And, in Europe, device usage in Germany and Spain can be as extreme.

But how about in the same country?

In Q1, we took a look at the differences in how content is consumed on the East and West coasts of the United States during the course of a week. We focused on how news and sports news were watched.



DESKTOPS

In general, viewers on the West Coast tend to start their activity earlier on all devices, likely to catch up on the news and early stock market action that East Coast viewers are already watching. Unlike television, the time that news appears on the Internet isn’t artificially controlled. In the East, desktop play requests begin to accelerate at 6 a.m., reaching an initial peak around 9 a.m. and a true peak at noon. Play requests decline through the day until a rapid decline begins at 5 p.m.

On the West Coast, the initial acceleration in plays begins around 4:30 a.m., with peak play requests at 9 a.m. Desktop usage begins to decline at that point, matching play requests in the East.

Overall, during weekdays, desktops seem to be constantly used during the day, but around 6 or 7 p.m., news site consumption seems to stabilize at half of the traffic observed during the day.

On weekends, desktop usage in both the East and West is more similar, reflecting a more casual approach to the news and markets. In both regions, play requests peak around 10 a.m. and stay relatively equal through 9 p.m.

EAST VS. WEST COAST:AVERAGE DAILY CONSUMPTIONDESKTOP Q1 2017

EAST COAST WEEKDAYEAST COAST WEEKENDWEST COAST WEEKDAYWEST COAST WEEKEND

8%

2%

4%

6%

0%

12AM 6AM 12PM 6PM 11PM

% D

AIL

Y A

VER

AG

E C

ON

SUM

PTIO

N

SMARTPHONES

Smartphones are nearly ubiquitous in the United States, and they’ve played a major role in driving the adoption of online video. Because of their size, they’ve become handy tools with which to catch up with the news, be it world and local, sports or, increasingly, financial. Our numbers show that — regardless of where the user is at the moment — they play an important role during the week on both coasts for users trying to keep up with the news and the markets.

Again, viewers on the West Coast appear to begin viewing content earlier: they watch more video between 4 a.m. and 11 a.m. than those in the East. Viewing in the West peaks twice, once between 8–9 a.m. and again between 8–9 p.m.

East Coast viewers, on the other hand, see peaks in weekday smartphone viewing at 8 a.m. and noon, and then see the largest usage around 9 p.m. Usage exceeds the West Coast beginning around 11 a.m. and stays higher through the very early morning hours.

The West Coast gets an earlier start on smartphone video than the East on weekends as well, by about an hour. Views peak at 9 a.m., compared to 10 a.m. in the East. After 10 a.m., usage on both coasts begins to flatten with a minor peak at 9 p.m. for both.


TABLET AND SMARTPHONE

VIDEO TRENDS

8%

2%

4%

6%

0%


% D

AIL

Y A

VER

AG

E C

ON

SUM

PTIO

N

EAST VS. WEST COAST:AVERAGE DAILY CONSUMPTIONPHONE Q1 2017


TABLETS

Eighty million tablets will ship in North America in 2018, up from 60 million in 2013, according to Statista. In 2014, there were 150 million tablet users in the U.S., a number expected to top 180 million next year. Clearly, the device has found a place in U.S. homes.

Like smartphones, tablets appear to be in use from the start of the day to the very end.

In the West, they again get an earlier start than they do in the East, with a peak at 8 a.m. and heavier usage than the other coast until the East catches up about 10 a.m. By 3 p.m., tablet use in the East surpasses that in the West. Western tablet usage shows another peak about 9 p.m. Eastern tablet video views may trail the West through most of the morning, but they accelerate past the West after 3 p.m. and show a significant peak around 9 p.m.

On weekends, morning usage is highest for the West with a peak at 8 a.m. and the East near 10 a.m. Usage remains steady throughout the day with a secondary peak in the East at 9 p.m. and the West at 10 p.m. Tablet play requests in the East outnumber those in the West from mid-morning on through the early morning hours.

THE BOTTOM LINE

Our peek into viewing differences between the East and West coasts on the United States could as easily have been a look at the differences between consumption in the North and the South, or between London and Liverpool, Berlin and Hamburg. Even regional services looking to leverage news or sports assets need to be aware of differing viewing habits across a very similar population.

That need is even more obvious when it comes to targeting advertising. It may be 9 in the morning in L.A., but for traders and financial analysts, it already is mid-day, and the ads they see should reflect that.


EAST VS. WEST COAST:AVERAGE DAILY CONSUMPTIONTABLET Q1 2017


8%

2%

4%

6%

0%


% D

AIL

Y A

VER

AG

E C

ON

SUM

PTIO

N

https://www.statista.com/topics/2927/tablets-in-the-us/



TABLET AND SMARTPHONE VIDEO TRENDSAs expected, the quarter continued to show that smartphones and tablets remain consumers’ go-to-devices for watching video. Q1 2017 set new records for mobile video starts, as 56.5% of all video plays were on mobile devices, up from 54.3% last quarter and from 47.7% a year ago. Like the Energizer bunny, mobile video just keeps on going.

Smartphones finished the quarter with 46.9% of all plays — nearly equaling the total for all mobile devices last year. It was the highest total for smartphones since we began the Video Index, up nearly 20% year-over-year. (Smartphones plays made up just more than 39% of plays a year ago.)

Tablets, too, set a record globally, finishing the quarter with nearly 10% of all plays (9.6%). In March, tablet plays hit 10.1% of all plays, the first time that device garnered a 10% share worldwide.

That mobile momentum has caught the eye of operators as they increasingly look to mobile as the future of their video efforts, as evidenced by AT&T’s mobile-friendly DirecTV Now service and the recent announcement that Charter would partner with Comcast on a wireless play. The deal will help both pay-TV providers move aggressively into delivery of video to mobile devices. (Comcast already has announced plans for Xfinity mobile, a wireless service that will utilize Verizon’s wireless network to deliver video content.)

And it’s not just for Millennials, the demographic globally that traditionally has driven mobile consumption of video.

More than three-quarters of Americans, for example, own smartphones, with men and women about equal. According to the Pew Research Center, 92% of Americans aged 18–29 own a smartphone, along with 88% of 30–49 year olds and 74% or 50–64 year olds. Some 93% of adults who make more than $75,000 annually also are smartphone owners.

Globally, nearly 3 billion people use smartphones, a number expected to double by 2020; 87% of smartphone owners say their phone is always at their side, according to Google, and they check their phones an average of 150 times a day. Mobile devices are expected to account for 75% of all Internet use this year, says ad firm Zenith.

A whopping 93% of Asia-Pacific Internet users owned smartphones, according to eMarketer, similar to smartphone penetration among Internet users in LatAm, and higher than in North America and Europe.

THE BOTTOM LINE

Clearly, consumers’ adoption of mobile devices isn’t slowing down. And, as you’ll see in later sections of the Video Index, they are as comfortable watching long content as they are watching short clips. That means all of your content has to be able to available for mobile consumption, that your business strategy embraces all screen sizes and that your sign-up, discovery, user experience and — if it’s part of your business — e-commerce needs to be as smooth as it is on bigger screens.


https://www.nytimes.com/2017/05/08/business/dealbook/comcast-charter-communications-deal.html

https://www.nytimes.com/2017/05/08/business/dealbook/comcast-charter-communications-deal.html

https://www.usatoday.com/story/tech/columnist/baig/2017/04/06/comcast-unveils-wireless-service-xfinity-mobile-45-65-month/100113234/

https://www.usatoday.com/story/tech/columnist/baig/2017/04/06/comcast-unveils-wireless-service-xfinity-mobile-45-65-month/100113234/

60%

45%

30%

15%

0%

SHARE OF PHONE VIDEO PLAYSSHARE OF TABLET VIDEO PLAYS

SUM OF PHONE + TABLET VIDEO PLAYS

THE RISE OF MOBILE VIDEOQ1 2017

JUL2013

JAN2014

JUL2014

JAN2015

JUL2015

JAN2016

JUL2016

MAR2017

JAN2017


We’ve been saying for several quarters that there’s an ongoing democratization of screen size, that every screen is likely to be used for almost any video.

But this quarter — for the first time ever — long-form content, content longer than 20 minutes in length, made up the majority of time watched on every screen: connected TVs, computers, tablets and smartphones.

SHARE OF TIME WATCHEDBY DEVICE AND VIDEO LENGTHQ1 2017

100%

25%

50%

75%

0%

PC PHONE TABLET CTV

SHORT-FORM (0–5 MINUTES)MID-FORM (5–20 MINUTES)

LONG-FORM (20 MINUTES OR MORE)

ENGAGEMENT TRENDS


Here’s how time watched for long-form content on each device has increased over the past five quarters:

Much of that is due to the increasing amount of premium content that services are making available to all devices. As more content is consumed, the percentage of time watched increases quickly. Obviously, the time spent watching a single episode of a television drama, for example, is potentially 30X to 45X the time spent watching a short news item or sports highlight.

When you consider that nearly three-quarters of Americans admit to binging, and that Millennials and Gen Edge viewers say they spend more than half of their viewing time watching screens other than TVs, it’s not all that surprising that time spent watching long-form content on smartphones has exploded.

Obviously, as the percentage of time spent watching long-form content increases, the inverse is true for short-form video from 0–5 minutes in length.

Short-form video has for years made up the majority of time watched on smartphones, accounting for 52% of viewing as recently as Q3 2016.

Again, as longer content has become more available, short-form has lost its dominance, particularly as larger screens — like that of the iPhone 6 Plus and others — have become more common. In Q1 2017, short-form content made up just 37% of time watched. On PCs, the number was 29%, with tablets at 26% and Connected TVs at a statistically insignificant 1%.

Smartphones during the quarter also saw the largest percentage of mid-length content consumed, 9%. That was more than computers (6%), tablets (5%) or connected TVs (1%).

As has been the case for a dozen quarters, tablets remained the most similar to connected TVs in terms of mid- to long-form content consumption. The resolution and size of the screen obviously delivers the closest thing to a big-screen TV experience, but on a more personal level. Tablets’ percentage of time spent watching mid- and long-form content was 86% (5% mid/81% long), behind connected TV’s 99% (1%/98%) and far ahead of computers at 71% (6%/65%) and smartphones at 64% (9%/55%).


Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017

83%92%

90%96%98%

CONNECTED TV

Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017

35%38%

42%55%

65%

PC

Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017

51%46%

43%65%

81%

TABLET

Q1 2016PHONEQ2 2016Q3 2016Q4 2016Q1 2017

29%25%

30%47%

55%

http://www.ooyala.com/videomind/blog/binging-big-small-screens-share-rising-original-content

http://www.ooyala.com/videomind/blog/binging-big-small-screens-share-rising-original-content

ENGAGEMENT TRENDS


THE BOTTOM LINE

The days of families watching television together in the living room may not be over, but it’s more likely now that Mom and Dad won’t be watching the same content as the kids or, perhaps, the same show together. Making content available on any screen in — or out — of the home increasingly has become table stakes, something consumers simply take for granted.

While the big screen may be the screen of choice — sometimes — it’s no longer guaranteed to be the center of attention.

Providers have to make sure every screen delivers a complete experience every time, and that mobile apps have to have the same content available as does a connected TV app.

As we’ve noted in past Video Index reports, short-form video has the greatest chance of being watched in its entirety, while longer-form video is more prone to abandonment earlier, regardless of the screen on which it’s being watched.

To maximize engagement and time spent with your content, make sure discovery and recommendation is as efficient on a mobile screen as it is on a PC or connected TV.

You need to deliver a quality experience on every screen.

Q1 2017 saw some interesting developments in the online video ad space.

Google saw a backlash by major advertisers including Procter & Gamble, Wal-Mart, Pepsi, Starbucks and others who joined in a blackout against the company after they discovered their ads sometimes ran next to objectionable videos on YouTube.

The brouhaha has led to a flight to quality by advertisers (with P&G at the helm), as they grow increasingly frustrated with what they see as poor ad supply hygiene. They’ve begun to hold their partners (initially, their buying agencies, trading desks, etc.) accountable for a more transparent and effective use of their ad spend.

This is going to have major downstream implications for those companies operating large open exchanges where they currently extract tons of value from the media ecosystem through non-transparent fees, floor manipulation, etc.

We’ve also begun to see some unlikely alliances come together. Call it the Rise of the Consortium, as the industry recognizes the broader threat posed by the likes of the seemingly omnipotent platforms like Facebook and Google.

Given the fragmentation and lack of scale when it comes to how audience segments are measured and traded, we’ve seen OpenAP develop. This partnership between Viacom, Fox, and Turner is designed to help standardize how audience segments (like “auto intender”) are defined, giving buyers a more consistent way to buy across the partnership at scale.

The recent alliance between AppNexus, LiveRamp, MediaMath and others is designed to standardize their identity framework across companies, helping drive better match rates and thus provide buyers with a better platform for audience buying.


VIDEO ADVERTISING TRENDS

THE IMPACT OF AD BLOCKING

Of course, ad blocking continues to be a major conundrum for the industry as it reached new levels in 2016 and accelerated early this year.

PageFair in January reported a 30% increase in the number of Internet users globally who were using ad-blocking software, to about 11% of all users. About 308 million mobile devices used as blocking along with 236 million desktop devices.

The cost?

Informa Group estimates more than $78 billion in lost revenue globally in 2020 if publishers do nothing to counteract it.

The biggest increase in ad-blocking usage occurred in the Asia Pacific region, where a surge of mobile ad-blockers served as a potential early warning for the rest of the world.

eMarketer last year estimated that 86.6 million Internet users in the U.S. will use some form of ad-bocking technology in 2017, up from just 39.7 million in 2014.

Ad blocking hurts the entire advertising ecosystem.

Increasingly, how ads are being deployed, their content and length are all being questioned. It’s become critical to deliver advertising content that consumers will be open to watching, because they really do have a choice.

At what point in a video ads are deployed plays a major role in how users watch them, something we’ve increasingly seen in the ad-tech data Ooyala collects. For instance, broadcasters have found that mid-roll ads show a far higher completion rate than do pre-roll ads.

Media buying group Zenith Media, in its 2017 ad spending forecast, foresees a 13% growth in global Internet ad spend, reaching a new total of $205 billion. Zenith — and others — predict that this will be the year that more money will be spent on Internet advertising than on traditional television advertising ($192 billion) globally.

With an additional 12% spend forecast for 2018, it’s become critical for brands to have a solid spending strategy for online video advertising.


VIDEO ADVERTISING

TRENDS

https://pagefair.com/blog/2017/adblockreport/



https://digiday.com/uk/uh-oh-ad-blocking-forecast-cost-35-billion-2020/

https://digiday.com/uk/uh-oh-ad-blocking-forecast-cost-35-billion-2020/

https://www.emarketer.com/Article/US-Ad-Blocking-Jump-by-Double-Digits-This-Year/1014111



PRE-ROLL AD IMPRESSIONS

During the first quarter, among broadcasters and publishers, PCs maintained a plurality of pre-roll ad impressions at 44%. But, phones (30.1%) and tablets (14.1%) combined to take the lead by a shadow at a combined 44.2%. Connected TVs, meanwhile, saw 11.8% of all pre-roll impressions.

Broadcasters saw pre-roll ad impressions on phones (31%) almost equal those on PCs (36.8%). When combined with tablets’ 16.1% of pre-roll impressions, however, it’s clear that mobile, at 41.1% of pre-roll ad impressions, is continuing as a favorite among broadcasters. Connected TVs, similar to tablets, drew 16.2% of pre-roll impressions. Compared to a quarter ago, PCs gave up just more than 2% of pre-roll ad impressions to smartphones and connected TVs; tablets also gave back about 1%.

For publishers, meanwhile, pre-roll impressions topped 55% on PCs, with smartphones at 30.7% and tablets at 13.7%. Smartphones and tablets gained 4.7% and 1.7% respectively during Q1 at the expense of PCs, in line with the continued growth of video viewing on mobile devices.


PRE-ROLLAD IMPRESSIONSQ1 2017

PCPHONETABLET

CTV

31%

37%16%

12%

BROADCASTERS

56%31%

14%

PUBLISHERS

MID-ROLL IMPRESSIONS

The first quarter saw broadcasters increase their reliance on tablets to deliver mid-roll ads, as the mobile devices took some 54% of share, unseating PCs (26.5%), which had held the lion’s share in Q4 (39%). Tablets’ gain was so strong, they easily overshadowed smartphones (12%) and connected TVs (14%), as well. Tablets increasingly are used as both primary and secondary screens. While users are engaged with connected TV screens, tablets often are used to graze other content, related and unrelated to the primary screen.

For publishers, smartphones made a similar move on PCs, accounting for 52.5% of mid-roll ad impressions, up from 48% a quarter ago. PCs, which had been responsible for 50% of mid-roll impressions in Q4, slipped to 47.5% in Q1.

MID-ROLLAD IMPRESSIONSQ1 2017

PCPHONETABLET

CTV

27%

12%

54%

8%

BROADCASTERS

47%53% PUBLISHERS


PRE-ROLL COMPLETION RATESBY MARKET SEGMENT Q1 2017

BR

OA

DC

AST

ERPU

BLI

SHER

0% 25% 50% 75% 100%

0% 25% 50% 75% 100%

PCPHONETABLETCTV

PRE-ROLL AD COMPLETION RATES

Broadcasters, with their abundance of premium content, have had enviable numbers as far as pre-roll ad completion in the past, and that didn’t change in Q1.

Connected TVs saw pre-roll completion rates top 93% during the quarter, compared to 92% a quarter ago. PCs were next most successful at 90%, up from 89% in Q4, with tablets (86%) and smartphones (85%) following. A quarter ago they had completion rates of 88% and 85% respectively.

Publishers saw lower pre-roll completion rates of 85% for connected TVs, up from 76% in Q4, followed by PCs (78% in Q1, 72% in Q4), smartphones (76% in Q1, 69% in Q4) and tablets (71% in Q1 and 70% in Q4).

VIDEO ADVERTISING TRENDS


MID-ROLL COMPLETION RATESBY MARKET SEGMENT Q1 2017

BR

OA

DC

AST

ERPU

BLI

SHER

0% 25% 50% 75% 100%

0% 25% 50% 75% 100%

PCPHONETABLET

CTV

MID-ROLL AD COMPLETION RATES

For broadcasters, as solid as pre-roll ad completion rates were, mid-roll completion rates were even more stellar, as users were willing to watch ads in return for the premium content they wanted to see.

Connected TVs saw a whopping 99% of mid-roll ads completed, compared to 98% a quarter ago. PCs and tablets were flat at 97% and 94% respectively, while only smartphones saw a decline to a still-reasonable 91% from 95% in Q4.

For publishers, completion rates on PCs increased slightly to 80% from 79% in the previous quarter, but smartphones counted just 54% of mid-rolls completed, an indication that consumers still may be less willing to consume ads on their smartphones as they graze websites than they are with broadcasters, where they may be going to watch specific content.

VIDEO ADVERTISING

TRENDS


THE BOTTOM LINE

Even as online video continues to gain traction with consumers, the industry is facing an “adpocalypse,” of sorts.

Brands are increasingly concerned about the content their ads are running alongside and consumers — via ad blockers — are determining how much, if any, ads they’re willing to watch.

Data and ad technology has never been more important, whether regulating ad placement against content or helping to unblock ads. Knowing who is watching your content, how to programmatically deliver your ads to the right platforms and viewers and where in the content to place ads will help you maximize the value of your content and the engagement of your customers.


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. This report does not document the online video consumption patterns of the Internet as a whole. But the size of the Ooyala video and advertising footprint, along with the variety of our customers, results in a representative view of global consumption and engagement trends.

Vudu, Sky Sports, NBCUniversal, RTL (Germany), TV4 (Sweden), Mediaset (Spain), STV (UK) and Singapore’s Mediacorp: these are just a few of the hundreds of broadcasters and media companies who choose Ooyala.

Ooyala is a subsidiary of Telstra, the largest telecommunications company in Australia, providing fixed and mobile services to millions of consumers, as well as advanced network applications and services to enterprise clients in Australia and overseas.

Headquartered in Silicon Valley, Ooyala has offices in New York, London, Stockholm, Sydney, Tokyo, Singapore, Cologne, Paris, Madrid, Chennai and Guadalajara, and sales operations in dozens of other countries across the globe.

For more information, visit www.ooyala.com.

ABOUT OOYALA’S GLOBAL VIDEO INDEX


http://www.ooyala.com

global video index -...

Documents