Increased Adoption of Programmatic Technology Drives Higher eCPMs and Video Ad Revenue Among European Content Providers in 1H 2015
London, UK – Ooyala, a Telstra subsidiary and a leading innovator in premium video publishing, analytics and monetisation, revealed data demonstrating significant programmatic revenue growth across an array of broadcasters and publishers using its programmatic trading platform, Ooyala Pulse SSP.
From the beginning of March 2015 through June 2015, a set of more than 40 plus broadcasters and publishers across Europe saw their effective cost per thousand impressions (eCPMs) increase more than 25 percent. Further, during this time their collective programmatic advertising revenue grew 119 percent. The growth is notable as European premium content providers shift their programmatic trading strategies from open to private marketplaces or programmatic direct transactions with greater yield for premium video inventory.
This momentum reflects Ooyala Pulse SSP results from just one year in the European market, where Ooyala is used by more than half of the regions broadcasters. The strong growth demonstrates large brands and advertisers comfort with the purchase of premium video inventory through private programmatic settings. The Q1 2015 RTB Report from AdForm shows that private marketplaces accounted for nearly 25 percent of all European advertising in Q1 2015 with expectations of that growing significantly in the coming months. The trend extends beyond Europe; eMarketer expects programmatic direct deals to reach $8.57 billion in the U.S, representing 42 percent of all programmatic ad spend by 2016.
“Distributing in the private, programmatic marketplace gives us an advantage when considering our video library, our offerings and the volume of inventory available today. As business with advertisers looking to make programmatic buys continues to grow, it’s important that we are able to meet the demand,” said Hassan Ali Khan, SVP Marketing of Onion, Inc. “From our perspective, Ooyala can help us meet this demand, while their yield management team will help optimize the process to efficiently connect the right partner at the right price point.”
Another example of this increased confidence is the trending uptick in deal ID-based transactions, which allow for one-to-one deals in a programmatic environment. These transactions grew at a monthly rate of 79 percent in Q1 2015, and in Q2 deal IDs grew more than two times that rate at 176 percent. Also in June 2015, eCPMs from programmatic direct deals were more than double those traded via marketplaces. Not only are premium content providers seeing greater value in quality by going direct with programmatic trading, but are increasing their revenue significantly.
“With Ooyala we’ve seen our programmatic bottom line increase month-over-month,” says Tom Ellingsen, Commercial Director of VGTV. “We find our ad buyers are comfortable with buying directly from us as they know exactly what they’re buying and the audiences we reach, making results and reporting very transparent.”
“Trading our inventory in private programmatic settings proves to be incredibly impactful to our business as the demand and willingness to purchase our premium inventory is high from our advertisers.” said Dilem Güler, digital director of Expressen, a leading Swedish national newspaper. “As our eCPMs continue to rise and inventory sells out, we shift more and more of our tier one content to programmatic trading with no loss in revenue, and in many cases at a gain.”
“We see Europe as the leading adopter for premium, programmatic direct trading,” said Maria Flores, vice president, programmatic sales of Ooyala. “Open marketplaces are dying as the industry migrates to exclusive trading environments. This is due to premium content owners seeing the direct impact programmatic trading has on their bottom line, and in their ability to put in place the control and transparency that they and their advertisers demand.”
About Ooyala
Ooyala helps deliver content that connects. A US-based subsidiary of global telecommunications and IT services company Telstra, Ooyala’s comprehensive suite of offerings includes one of the world’s largest premium video platforms and a leading ad serving solution. Built with superior analytics capabilities for advanced business intelligence and a strong commitment to customers success, Ooyala’s industry-leading end-to-end solutions help large-scale broadcasters, operators, media companies, enterprises and brands build more engaged and more profitable audiences, and monetize video and TV with personalized, interactive experiences across any screen.
ESPN, Univision, Sky Sports (U.K.), Foxtel (Australia), NBCUniversal, RTL Group (Germany), M6 (France), TV4 (Sweden), Mediaset (Spain) and STV (U.K.): these are just a few of the hundreds of broadcasters and media companies who choose Ooyala.
Headquartered in Silicon Valley, Ooyala has offices in New York, London, Stockholm, Sydney, Tokyo, Singapore, Cologne and Guadalajara, and sales operations in dozens of other countries across the globe. For more information, visit www.ooyala.com.
