Ad starts and viewers had their 25th consecutive quarter of double digit growth, according to Freewheel. However, the screen driving that growth has switch from mobile to the television.
Chapter 1: Connected TV device growth (2:20)
This week, Will and I talk with Mike Lawlor, SVP of Client Services at Freewheel, about the company’s just released Q1 2017 Video Monetization Report.
32% of all ad views in premium video are now seen through television connected devices (smart TVs, streaming media players, game consoles, connected disk players). This is up from 2% in Q1 2013, a 16X increase in 4 years. This growth is mainly at the expense of desktop ad views, which fell from 81% in 2013 to 31% today.
Chapter 2: Operator STB VOD ad views (6:10)
Freewheel also reports on the number of ad views seen by people through their operator video-on-demand systems. Operators have been upgrading these systems to allow ads to be inserted before, during, and after shows. According to Mr. Lawlor, 13% of long form on-demand ad views are seen by consumers. He thinks this growth is because operators have only recently rolled out the technology that allows them to insert ads into VOD content.
Chapter 3: The new living room (8:10)
Will points out the 45% of premium ad views are now seen on the big screen. Mr. Lawlor says he thinks the ad inventory that is seen through the television is the most important in online media. People are the most engaged when watching on the TV and the ad-view is “fraud-free.”
Chapter 4: What types of content are people watching (10:30)
I speculated that the increased use of the television to watch online content is possibly responsible for the increase in the amount of long-form content people are watching. Mr. Lawlor agreed, but he also thought live was becoming much more important.
Will cited two key statistics from the report: there was 12% video start growth year-over-year, and 15% ad view growth. Mr. Lawlor said this is 25th straight quarter that there has been double digit growth in these two metrics.
Chapter 5: Programmatic ads represent just 10% of premium ad sales (13:30)
I ask Mr. Lawlor why programmatic ad trading was such a small part of sales of premium ad inventory. He said it was because programmatic was originally targeted at short form content. It is only just beginning to be applied to long-form inventory.
Chapter 6: Ad break length same for all screens (16:20)
I was surprised that ad break length was about the same (4 ads per break) for smartphone, TV, PC, and tablet. I wondered if this was optimal for revenue generation, or if providers should flex the ad break length by platform.
Chapter 7: On improving the ad experience (17:40)
Will pointed out the binge viewing on SVOD services was putting pressure on the ad-supported model. Mr. Lawlor points out that brands and content providers objectives are aligned: keep people watching longer. He believes that making the ads engaging is the best way to do this. I asked if he was seeing a lot experimentation in advertising. He said there is lots of experimentation.
Chapter 8: Looking to the future (22:00)
Mr. Lawlor says he expects more utilization of data, a continued drive to the living room, and an increase in the use of automation.
You can get a free copy of the report from the Freewheel website.