Programmatic Trading Sees Strong Growth in Q2, Finds Oolaya

Real-time bidding (RTB) makes up about half of programmatic video ad sales, says Ooyala, and that area saw big quarter-over-quarter growth in all markets, increasing by nearly 50 percent in the second quarter of 2016. That information comes from Ooyala’s Q2 2016 Global Video Index.

Ooyala2016Q2The report offers sales numbers, saying CPMs are at about $9.50 for long-tail inventory, and between $15 to $17 for fixed-price deals. Second-price auctions see even high prices, between $19 and $21. Ooyala expects programmatic trading in the U.S. to grow at a compound annual growth rate of over 143 percent through 2018.

Looking at pre-rolls, the report says completion rates are highest on connected TVs (95 percent), then computers (91 percent), tablets (90 percent), and phones (87 percent).

Mobile video viewing has been growing quickly for years and has now reached an important milestone: 51 percent of all online video viewing is now done on a mobile device. This number shows a 15 percent increase from 2015 and a 203 percent increase from 2014.

Together, iOS and Android devices make up 98 percent of all mobile viewing, with that total split pretty evenly: 52 percent of video plays are on iOS devices and 48 percent are on Android. Ooyala found the biggest change in the tablet market: While iOS tablets had 91 percent of all tablet video views in Q2 2015, that took a nose dive to 65 percent in Q2 2016.

Ooyala worked with subscription payment services company Vindicia in this report to look at how subscription video-on-demand (SVOD) providers can lower subscriber churn. Based on surveys of 1,000 U.S. adults, the report says 39 percent of those leaving an SVOD service do so because of a lack of value. However, 90 percent would pay for extras like access to discounts, and that would keep them subscribed for longer. Those surveyed would pay up to $3.99 per month for extra perks.

For more, download the full Q2 2016 Global Video Index for free (registration required).


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