Ooyala Study Finds Mobile Audiences Rapidly Growing

Ooyala, a California-based specialist in video publishing, analytics and monetization, has released a new study showing that mobile devices increased up to 42 percent of all online viewing during the first quarter of 2015.

The Ooyala Global Video Index found that smartphones are driving the majority of mobile viewing growth, receiving four times more plays than tablets during the quarter. The study also found that TV broadcasters, compared to publishers and brands, lead the viewing trend with more than half of all views on mobile devices.

Another trend the study found is that more video advertising is shifting from personal computers to mobile devices. For the first time, the Index showed the impact of personalized content recommendations on viewer engagement and revenue opportunities, as well as emerging trends in programmatic trading between premium content providers and advertisers.

The study highlights the profitability potential to build content strategies around mobile as it continues to grow more rapidly than any other viewing option. In the first quarter of 2015, plays on tablets and smartphones together increased more than 24 percent — 100 percent since the first quarter of 2014 and a whopping 367 percent increase over the past two years.

Ooyala found TV broadcasters have taken 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 the quarter, TV broadcasters saw 53 percent of their content play on mobile devices, compared to 31 percent for publishers and 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.

This report shows the opportunity for content providers to personalize their experiences, increasing engagement and ultimately revenue. For 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 percent of the time.

Breaking down into verticals, the report shows among news broadcasters, the Discovery starts ratio was 33 to 44 percent; for sports broadcasters, it was 40 to 53 percent; and for consumer publishers, the Discovery starts ratio was at least 33 and as high as 58 percent.

The report identifies trends that signify industry progress towards more programmatic trading. In the survey period, Ooyala saw that Deal ID Transactions — the identifier used to facilitate programmatic private marketplace transactions — among broadcasters and premium publishers, grew 79 percent month-over-month between January and March.

This, Ooyala said, is a testament to premium content owners automating their direct sales through programmatic and their increased confidence in this form of trading.

“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 personalization has never been more important,” said Jay Fulcher, chief executive officer of Ooyala.

To download the index, click here.

Mobile Growth Chart

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