Wednesday, September 16th, 2015 - NewsMaker

New Ooyala Report Reveals Premium Broadcasters Boost Advertising Revenue With Programmatic Trading

SANTA CLARA, CA--(Marketwired - Sep 16, 2015) - Ooyala, a Telstra subsidiary and a leading innovator in premium video publishing, analytics and monetization, released its Q2 2015 Global Video Index, revealing 49 percent of all ad impressions for publishers were on mobile devices during the quarter, an 11 percent increase from Q1 2015. Further, the report shows 44 percent 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.

Mobile Viewing Continues To Climb
Since Q2 2012, mobile viewing has grown at an annual compound growth rate of 111 percent, peaking at 44 percent of all online viewing in Q2 2015. This growth represents a stunning 844 percent 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 percent in 2015, and another 20 percent in 2016, and attributes the majority of growth to mobile viewing as smartphones and tablets penetrate global markets.

In particular, 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 percent 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.

Programmatic Proves Profitable In Europe
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 percent on average, while their collective programmatic advertising revenue grew 119 percent.

The growth is accredited to the increase of programmatic direct deals. Deal ID transactions, which allow for one-to-one deals in a programmatic environment, grew at a monthly rate of 79 percent in Q1 2015, and in Q2 deal IDs grew more than two times that rate, at 176 percent. Also in June 2015, eCPMs from programmatic direct deals were more than double those traded via marketplaces. This demonstrates that large brands and advertisers are more comfortable purchasing premium video inventory in private programmatic settings. In fact, eMarketer expects programmatic direct deals to reach $8.57 billion in the U.S., representing 42% of all programmatic ad spend by 2016.

"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 behavior."

Additional Highlights:

         Online Viewing:

    • Mobile phones (32%) remain a popular screen for watching short-form video in lengths of 1-3 minutes, although PCs (32%) appeared to be equally as popular.
    • When it comes to longer-form content of over 10 minutes in length, views by device were more even. Tablets (57%) and connected TVs (53%) saw a slightly higher percentage of views, followed by desktop (40%) and mobile phones (33%).

         Online Advertising:

    • Broadcasters streaming long-form premium content continued to see ad completion rates at and above 90%, depending on the screen. Tablets delivered rates exceeding 92% and PCs remained above 90%.
    • PCs had the highest fill rate for publishers, 92%, up from 77% in Q1. Broadcasters, meanwhile, saw PC fill rates increase to 67% from 64%.
    • Broadcasters also saw fill rate climb on mobile devices, with a fill rate of 74% for mobile phones and 70% for tablets in the quarter, up from 54% and 57% in the previous quarter. Publishers saw rates of 89% and 88%, up from just 55% for mobile phones and 56% for tablets.

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, Ooyala's comprehensive suite of offerings includes one of the world's 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, Ooyala's 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 Group (Germany), M6 (France), TV4 (Sweden), Mediaset (Spain) and STV (U.K.): these are just a few of the hundreds of broadcasters and media companies who choose Ooyala.

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


Contact Information

Contact for Ooyala:
Paul Bernardini
[email protected]
[email protected]

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Ooyala Q2 2015 Video Index Reveals Mobile Ad Spend Accelerating Pace Mobile Viewing



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