CANNES – Live streaming video is helping to break down the perceived barriers between traditional television and premium video, while OTT viewing continues to see tremendous growth, according to the latest FreeWheel Video Monetization Report (VMR).
In this interview with Beet.TV, VMR author Ying Wang discusses the first quarter VMR findings, which show that premium video monetization mirrors linear TV investment in terms of the top industry categories.
“We’ve never been closer to true unification in the premium video industry. We’re seeing digital video and what we call traditional television look more and more similar,” says Wang, who is FreeWheel’s Director of Advisory Services.
She cites as examples “more and more people are consuming live streaming content through digital devices.” In the United States, about 25% of all ad views come from live stream devices, according to the VMR.
“That’s continuing to grow due to really great sports content, as well as a lot of live streaming happening on news. The content people are seeking out is looking more and more similar across all of the different end points,” Wang says.
One of the more interesting trends to Wang is that one out of every two ad views is now happening on the big screen. The biggest driver is OTT viewing.
For the first time, OTT devices that are connected to the TV set surpassed desktop as the largest platform where premium video is consumed. Together with set-top-box video on demand, the two living room-centric platforms account for nearly half of all ad views the first quarter, according to the VMR.
“OTT combines the best of digital, and the ability to measure and target on impressions with the best of linear, which is the engagement and high quality experience,” Wang says.
About one third of all ad views in the U.S. happen on OTT compared to around 20% in Europe, according to the VMR. Millennials account for 56% of all OTT ad views, “which is a great proposition for OTT,” Wang adds.
Additionally, OTT has very high ad completion rates. Around 98% of all ads viewed on OTT are completed, which is the highest of any digital device.