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Broadcasters embrace digital as programmatic ads skyrocket
Michelle Clancy
| 26 May 2016
There are challenges facing ‘the publi-caster’ — that is, traditional publishers turning into broadcasters — to adapt to consumer video viewing habits and to monetise their content.
ooyalaOoyala’s State of Media Industry report shows, among other things, that tablet and smartphone video plays have a CAGR of more than 116%. Desktop Internet use, meanwhile, might have peaked last year, and is in a steady decline in favour of mobile.
“Audience habits are changing with the rise of mobile as the screen of choice across generations and demographics,” the report noted. “Media companies who can successfully attract (and monetise) new, digital-savvy viewers with relevant, discoverable and shareable content will stay ahead of the pack. Look for 2016 to be a year of innovation in the space with major global events driving publishers to focus on increased personalisation and socialisation of content.”
And this is already starting: 73% of papers now have some form of a digital subscription requiring readers to pay for unlimited online access, many only launched within the past five years. Traditional media is embracing digital in other ways too: News UK, The Atlantic & The New York Times are investing heavily in video not only on their own sites but also on platforms like Snapchat Discover and Facebook to expand audiences, test content and grow revenue. NBCUniversal invested in both Vox and Buzzfeed to co-produce original video content, and USA Today’s newly-announced VRtually There channel is billed as the first branded VR news channel.
“Creative collaborations are increasing as publishers try to survive and thrive,” said Ooyala in the report. “Meanwhile, some attempts to expand reach to platforms may end up trading short-term gains for a great long-term cost. Monetisation is changing and will continue to evolve. Look for more innovative hybrid models to rise in response to all of these challenges, while data and video remain vital pieces of the puzzle.”
Dovetailing with this, US programmatic digital video ad spending topped $2.91 billion last year, accounting for about 39% of the digital video ad spend in the last year. In 2016, that number is expected to increase nearly 85% to $5.37 billion.
The most popular digital videos of 2015 across Ooyala’s publisher network, accounting for 95% of the videos tracked for the research, were under five minutes in length, with the sweet spot being around 2.5 minutes.
Drilling down to individual preferences for content consumption is inevitable for all media companies that hope to succeed in a digital-first world. Look for more publishers to prioritise data-driven approaches to content selection and delivery, and offer more opportunities for audiences to literally become part of the stories they tell.
The study echoes previous research commissioned by Ooyala, which suggests that the industry is moving into a new phase of growth in programmatic, in which emphasis will shift towards quality, transparency, control, flexibility and collaboration – helping create a new equilibrium between premium publishers, advertisers and agencies.
Michelle Clancy
| 26 May 2016
There are challenges facing ‘the publi-caster’ — that is, traditional publishers turning into broadcasters — to adapt to consumer video viewing habits and to monetise their content.
ooyalaOoyala’s State of Media Industry report shows, among other things, that tablet and smartphone video plays have a CAGR of more than 116%. Desktop Internet use, meanwhile, might have peaked last year, and is in a steady decline in favour of mobile.
“Audience habits are changing with the rise of mobile as the screen of choice across generations and demographics,” the report noted. “Media companies who can successfully attract (and monetise) new, digital-savvy viewers with relevant, discoverable and shareable content will stay ahead of the pack. Look for 2016 to be a year of innovation in the space with major global events driving publishers to focus on increased personalisation and socialisation of content.”
And this is already starting: 73% of papers now have some form of a digital subscription requiring readers to pay for unlimited online access, many only launched within the past five years. Traditional media is embracing digital in other ways too: News UK, The Atlantic & The New York Times are investing heavily in video not only on their own sites but also on platforms like Snapchat Discover and Facebook to expand audiences, test content and grow revenue. NBCUniversal invested in both Vox and Buzzfeed to co-produce original video content, and USA Today’s newly-announced VRtually There channel is billed as the first branded VR news channel.
“Creative collaborations are increasing as publishers try to survive and thrive,” said Ooyala in the report. “Meanwhile, some attempts to expand reach to platforms may end up trading short-term gains for a great long-term cost. Monetisation is changing and will continue to evolve. Look for more innovative hybrid models to rise in response to all of these challenges, while data and video remain vital pieces of the puzzle.”
Dovetailing with this, US programmatic digital video ad spending topped $2.91 billion last year, accounting for about 39% of the digital video ad spend in the last year. In 2016, that number is expected to increase nearly 85% to $5.37 billion.
The most popular digital videos of 2015 across Ooyala’s publisher network, accounting for 95% of the videos tracked for the research, were under five minutes in length, with the sweet spot being around 2.5 minutes.
Drilling down to individual preferences for content consumption is inevitable for all media companies that hope to succeed in a digital-first world. Look for more publishers to prioritise data-driven approaches to content selection and delivery, and offer more opportunities for audiences to literally become part of the stories they tell.
The study echoes previous research commissioned by Ooyala, which suggests that the industry is moving into a new phase of growth in programmatic, in which emphasis will shift towards quality, transparency, control, flexibility and collaboration – helping create a new equilibrium between premium publishers, advertisers and agencies.
