Ooyala sums up mobile video advertising industry developments for 2016


Ever more digital content views are now happening on mobile screens, which closes the gap between mobile usage and advertising spend as campaigns are improved, reach the right audiences and the experience becomes personalised.

That’s according to the latest report from Ooyala, the online video technology provider. The State of the Media Industry 2016 research also reveals that media companies have begun to launch mobile-first content to stay ahead of the competition.

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In addition, it says that multi-cultural audiences such as Hispanics are driving digital content consumption on mobile devices. In order to tap into that market, CafeMom, for example, launched a mobile-first platform called Vivala to reach Millennial Hispanic women.

Publishers have also configured where they fit in and are prioritising personalisation of their short and long-form mobile video formats.

It’s clear that audience habits are driving the rise of mobile screens to view content. Content providers and marketers can attract new viewers if they ensure that videos are relevant, discoverable and shareable.

Ooyala also found that short-form, mobile-friendly content has gained in popularity among media companies that want to grow engagement and revenue streams. According to data from Ooyala, 95% of the most popular videos tracked for 2015 were less than 5min long with 2.5min being the average sweet spot. 70% of Americans now watch shorter videos daily on their mobile devices, according to Recent Parks Associates.

Live streaming is also taking off and presents a good opportunity for brands to tap into a slightly different mobile video avenue.

When it comes to consumer acceptance of mobile ads, Millward Brown recently found that over 60% of those who view online video would prefer to control the ads they see and 40% responded favourably to personalised ads. Another 50% disliked mobile video ad content.

However, Ooyala cautions that user patience for ad load times and weak video ad experiences on mobile are to be taken seriously. Mobile bounce rates are 10-20% more than on desktop, says RocketFuel.

Mobile video programmatic is another area where the company expects growth as eMarketer forecasts spend to reach $3.79bn in 2017 from $1.14bn in 2015.

Ooyala notes in its report:

Digital advertising has both dynamic challenges with ad blocking and data-driven opportunities via new formats and technologies. Look for further advancements in these areas as mobile grows into its role as the primary screen for both video and ads