Mobile video ad spend accelerating at pace | Online Video | News | Rapid TV News
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The Ooyala Video Index for the second quarter of 2015 has revealed just how fundamental and rapidly growing the mobile platform is for video viewing.

The quarterly report showed that 44% of all online viewing was now on mobile devices, and that nearly half of all ad impressions for publishers were on mobile devices during the quarter, an 11% increase from the first quarter of the year. Taken together, said the online video firm, the trends suggest advertisers are shifting ad dollars to match the influx of mobile viewing and to serve a new generation of TV viewers who Ooyala regards as more comfortable watching content on mobile devices.

The data also showed that since Q2 2012, mobile viewing has grown at an annual compound growth rate of 111%, peaking at 44% of all online viewing in Q2 2015, and an 844% climb since 2012.

The Ooyala report also shows that smartphones received eight times more plays than tablets this quarter, and predicts that by the year's end half 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 packaging premium content into their services.

Mobile phones (32%) remained a popular screen for watching short-form video in lengths of one to three minutes, although PCs (32%) appeared to be equally as popular. For longer-form content of over ten 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%).

"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 Ooyala principal analyst Jim O'Neill. "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 behaviour."

Of the other findings in the report, the continued growth of programmatic trading among premium broadcasters and publishers stood out. Using a sample of more than 40 European broadcasters using its Pulse SSP its programmatic trading technology, Ooyala found that from the beginning of March 2015 to June 2015, these companies saw their eCPMs increase more than 25% on average, while their collective programmatic advertising revenue grew 119%. The growth was attributed 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% in Q1 2015, and in Q2 deal IDs grew more than two times that rate, at 176%.