Content engagement varies widely across digital video segments, research has revealed, indicating that publishers have an opportunity to tailor their monetisation strategies accordingly.
According to Ooyala’s Q1 2016 Global Video Index, SVOD services like Netflix are almost exclusively comprised of long-form content like episodic series and full-length feature films. As such, nearly 100% of viewing across all devices is with long-form video, defined as content lasting 20 minutes or longer. However, consumption on ad-supported VOD (AVOD) differs significantly.
For AVOD, smartphone and PC viewers prefer short-form content the most, at 66% and 55% respectively. Tablet viewers spend little time with short-form video; instead viewing is evenly split between long-form (43%) and short-form content (44%). Connected TV viewers watch long-form content 92% of the time with AVOD services.
The report also analysed how consumption of AVOD and SVOD assets differ by device and content length. The findings show a near split in engagement between small and large screen devices. AVOD viewers spend 55% of their time on PCs, while SVOD viewers do the opposite, spending 55% on their time on mobile devices. This suggests SVOD services are more personal experiences and, therefore, favour more personal devices.
The Index also took a look at the trends, causes and solutions to video drop-off rates. The data shows that short-, mid- and long-form video viewers tend to drop off anywhere between 70% to 95% of completion depending upon device and content length.
Unsurprisingly, short-form video sees the highest completion rate, at 90% to 95%. PC viewers drop off sooner than on mobile devices regardless of content length. Quality-of-experience (QoE) is cause as well as solution for drop-off rates, finding a .2% or less buffer ratio, or the amount of time spent buffering versus watching, proves to be the most successful in keeping viewers engaged. Half of viewers drop from video when the buffer ratio is 1%, and 43% drop when it’s 0.4%.
Content recommendations make a significant impact on viewer retention. Pulling data from Ooyala Discovery, the company’s content recommendation technology, the report found viewers will on average watch 40% of all content recommended to them, driving more views. After being served recommended viewers will average a 10% organic lift in video viewing thereafter, leading to a 6% to 23% uptick of time spent on site.
“The TV revolution has reached an inflection point as already-complex issues now compound upon one another causing even more perplexing challenges for premium content providers. Everything from the quality-of-experience to buffer ratios, business model strategies and how to keep viewers engaged, success in today’s TV landscape requires big solutions to big questions,” said Ooyala principal analyst, Jim O’Neill. “Having a data-driven and analytics-informed business is key in reducing the complexities and building a healthy, and lucrative video business.”
When it comes to the advertising ramifications of this, between Q4 2015 and Q1 2016 there was a 22% increase in the amount of premium content made available across the global user base of Ooyala Pulse SSP, Ooyala’s programmatic trading platform for premium video. Combined with continued growth in programmatic activity from premium buyers, this led to a 74% increase in paid impressions. The result was a 13% increase to the average CPM in private marketplaces, notable as it occurred during Q1 when CPMs typically see a decrease.
