Dive Brief:
- The Ooyala Q2 2016 Global Video Index found that, for the first time, mobile devices account for more than half of online video views at almost 51%, up 15% over 2015 and 203% over 2014.
- Among what the report called “power users,” advertising-based business models saw 37% more traffic during the work week than on weekends, 76% of subscription-based power users visit two to three days per week peaking on Friday and Saturday, and transactional-based sites have a 13x lift on the weekends.
- On mobile devices, iOS commands 52% of smartphone video plays while Android makes up the 48% difference. For tablets, iOS dropped from 91% of views in Q2 last year to only 65% this year.
Dive Insight:
Like most recent research, the Ooyala report underscores that it’s a mobile-first marketing world and that video is becoming the key content type on mobile devices, particularly for younger demographics. The study found that for video length, five minutes or less makes up 55% of smartphone views while medium-form content of five to twenty minutes commands 18 to 20% of views across smartphones, tablets and computers. Long-form video of twenty minutes or longer accounts for 92% of set-top box views, and 46% of tablet views.
As on-demand video consumption grows, so, too, is the number of subscription services. The Ooyala report found that 74% have at least one over-the-top subscription video service, with 58% using their favorite service at least 11 hours per week.
With competition for on-demand video viewers heating up, a key takeaway from the report is that more value needs to be built into subscription services. The findings include that 39% of customers churn due to a “lack of value” and 90% are willing pay extra for perks like access to special offers.
Other findings from the report include programmatic growing globally due to open-market RTB deals and an increase in quality content from publishers, and CPMs up across the board with second-price auctions reaching $19 to $21 CPM.
