IBC 2015: Ooyala sees triple-digit growth in programmatic ad revenue


Michelle Clancy

| 14 September 2015

Programmatic advertising revenue growth is spiking across an array of broadcasters and publishers, according to online video firm Ooyala.

From the beginning of March 2015 through June 2015, a set of more than 40 plus broadcasters and publishers across Europe saw their effective cost per thousand impressions (eCPMs) increase more than 25%, the company said, when using its programmatic trading platform, Ooyala Pulse SSP.

Their collective programmatic advertising revenue meanwhile grew 119%.

The momentum reflects Ooyala Pulse SSP results from just one year in the European market , where Ooyala is used by more than half of the regions broadcasters.

"We see Europe as the leading adopter for premium, programmatic direct trading," said Maria Flores, vice president of programmatic sales of Ooyala . "Open marketplaces are dying as the industry migrates to exclusive trading environments. This is due to premium content owners seeing the direct impact programmatic trading has on their bottom line, and in their ability to put in place the control and transparency that they and their advertisers demand."

The growth is notable as European premium content providers shift their programmatic trading strategies from open to private marketplaces or programmatic direct transactions with greater yield for premium online video inventory. The Q1 2015 RTB Report from AdForm shows that private marketplaces accounted for nearly 25% of all European advertising in Q1 2015 with expectations of that growing significantly in the coming months. The trend extends beyond Europe; research firm eMarketer said that it expects programmatic direct deals to reach $8.57 billion in the US, representing 42% of all programmatic ad spend by 2016.

"With Ooyala we've seen our programmatic bottom line increase month-over-month," says Tom Ellingsen, commercial director of VGTV. "We find our ad buyers are comfortable with buying directly from us as they know exactly what they're buying and the audiences we reach, making results and reporting very transparent."