Mobile matters most for video consumption and ad growth in Ooyala index

DetailsEditor | 26 June 2015

The smartphone revolution is well and truly driving online video consumption, according to the latest Ooyala Global Video Index.

The Q1 2015 edition of the quarterly survey revealed a number of trends, including the increasing uptake of premium programmatic trading and personalised experiences boosting engagement. Yet the standout was that mobile devices made up 42% 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. In Q1 2015, plays on tablets and smartphones together increased more than 24%, 100% since Q1 2014 and up 367% over the past two years.

TV broadcasters accounted for more than half of all views on mobile devices, illustrating, said Ooyala, how more video advertising is also shifting from PCs to mobile devices. It added that one of the key themes of the report was how it highlighted the profitability potential to build content strategies around mobile as it continues to grow more rapidly than any other viewing option. Broadcasters were seen to be 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% of the time, while smartphone users complete ads 79% of the time. Further, in Q1, TV broadcasters saw 53% of their content plays on mobile devices, compared to 31% for publishers and for brands. Ooyala believes that the growth of mobile and tablets this quarter supports the prediction that viewing will make up half of all online viewing before the end of 2015.

Also for the first time the Global Video Index also showed 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.

It also revealed an 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 found that consumers will view recommended content as often as 50% of the time. 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%

"Our data is indicative of the rapid pace of change in consumer viewing behaviour, which creates new challenges and opportunities for content producers, service providers, and advertisers," commented Ooyala chief executive officer Jay Fulcher. "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."