Tuesday, 21 June 2016 23:33

Ooyala launches Q1 Video Index, looks at ‘more lucrative OTT strategies’

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Telstra subsidiary Ooyala has published its Q1 2016 Global Video Index, drawing insights from more than 3.5 billion video analytic events per day from 220 million viewers.

In Q1, Ooyala’s video index also compares "engagement trends between subscription video services (SVOD) and advertising video services (AVOD), helping premium content providers understand how viewership differs between the two business models to better inform monetisation strategies".

The detailed 27-page report can be downloaded here after free registration.

Ooyala says its report "analyses the correlations between content length and drop-off rates as well as the impact of content recommendations to keep viewers watching longer".

Further, the report "shows the continued growth of premium, programmatic trading, the success of ad-reinsertion technology, the continued growth of mobile consumption, as well as time-of-day viewing patterns".

SVOD vs. AVOD:

Ooyala says its findings "show a strong correlation between content length and engagement in each model, revealing opportunities for publishers to tailor their monetisation strategies accordingly".

For SVOD services, which Ooyala notes "are almost exclusively comprised of long-form content like episodic series and full-length feature films, nearly 100% of viewing across all devices is with long-form video, content 20 minutes or longer".

However, we are told that "consumption on AVOD differs significantly".

  • Smartphone and PC viewers are reported to "prefer short-form content the most, at 66% and 55%, respectively".
  • Tablet viewers spend "little time with mid-form video, instead viewing is evenly split between long-form (43%) and short-form content (44%)".
  • Connected TV viewers watch long-form content with AVOD services 92% of the time.
  • Ooyala says its report "also analyses how consumption of AVOD and SVOD assets differ by device and content length".

The findings show a near split in engagement between small and large screen devices.

AVOD viewers spend 55% of their time on PCs, while SVOD viewers do the opposite, spending 55% of their time on mobile devices. This suggests SVOD services are more personal experiences and, therefore, favour more personal devices.

More below, please read on.

Ooyala global video index

Opportunity with programmatic trading platform and ad-reinsertion:

Between Q4 2015 and Q1 2016, Ooyala reports "a 22% increase of premium content made available across the global user base of Ooyala Pulse SSP", the company’s "programmatic trading platform for premium video".

Combined with continued growth in programmatic activity from premium buyers, this led to a reported 74% increase in paid impressions.

As a result, says Ooyala, "average CPMs in private marketplaces increased by 13%, notable as CPMs typically decrease in Q1".

Ad-blocking and Ooyala Unlock

The report also focuses on ad-blocking, its continued rise of global adoption across devices and the success of broadcasters and publishers using Ooyala’s ad-reinsertion technology, Ooyala Unlock.

Broadcasters affected by ad blockers increased ad impressions by as much as 15% with Ooyala Unlock. Publishers in similar circumstances saw ad impressions increase by as much as 23%.

Engagement Trends:

Ooyala says its "new Index takes a unique look at the trends, causes and solutions of video drop-off rates".

The data shows short-, mid- and long-form video viewers tend to drop off anywhere between 70% to 95% of completion, depending upon device and content length.

Short-form video sees the highest completion rate of 90% to 95% and PC viewers drop off sooner than on mobile devices, regardless of content length.

Quality-of-experience (QoE) is a cause as well as a solution for drop-off rates. The report finds a 0.2% or less buffer ratio, or the amount of time spent buffering versus watching, proves to be the most successful in keeping viewers engaged.

Half of viewers drop from video when the buffer ratio is 1%, and 43% drop off when it’s 0.4%.

The company also notes that "content recommendations make a significant impact on viewer retention".

Pulling data from Ooyala Discovery, the company’s content recommendation technology, the report finds viewers will, on average, watch 40% of all content recommended to them, driving more views.

Ooyala principal analyst Jim O’Neill said: “The TV revolution has reached an inflection point as already complex issues now compound upon one another causing even more perplexing challenges for premium content providers.

“Everything from the quality-of-experience to buffer ratios, business model strategies and how to keep viewers engaged, success in today’s TV landscape requires big solutions to big questions.

“Having a data-driven and analytics-informed business is key in reducing the complexities and building a healthy, and lucrative video business.”

More Q1 2016 Video Index highlights include:

  • Mobile viewing now represents 48% of all online view starts, up 14% from a year ago and up 129% from 2014.
  • Nearly one in five (18%) of all mobile views are now on tablets, marking the third consecutive quarter of growth for tablet viewership.
  • After being served recommended content, viewers will average a 10% organic lift in video viewing thereafter, leading to a 6% to 23% uptick of time spent on site.
  • During weekdays all devices ramp up in viewership synchronously in the morning, PCs outpace tablet and smartphones combined, but at night tablets and smartphones increase as PCs decrease.
  • During the weekends, interestingly, all devices share similar cycles: ramp up in the morning, maintain steady usage throughout the day and dip in the evening.

Ooyala is offering two free webinars on June 28 (US time) to dig into the Q1 numbers with its experts, Paula Minardi (content strategy manager, Ooyala) and O'Neill, who is also editor of Videomind.

Registration details for the webinars are on the same page from which you can download Ooyala’s report after free registration.

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One of Australia’s best-known technology journalists and consumer tech experts, Alex has appeared in his capacity as technology expert on all of Australia’s free-to-air and pay TV networks on all the major news and current affairs programs, on commercial and public radio, and technology, lifestyle and reality TV shows. Visit Alex at Twitter here.

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