Singapore – Ooyala 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 illustrate 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 personalised 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 Monetisation
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 personalise 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%
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