Roughly Half of Premium Video Ad Views Occurred On A TV Screen in Q3

December 26, 2017

One of the biggest trends in premium digital video viewing in recent years has been the growth of OTT devices, which have exceeded all other devices in ad view share. But it’s not just OTT devices: monetization of set-top box video-on-demand (STB VOD) inventory is also on the rise, per FreeWheel’s latest report [download page].

The report, which covers Q3 2017, indicates that 29% share of premium digital video ad views occurred on an OTT device during the quarter, edging desktops (28%) to emerge as the top device.

Not far behind, though, is STB VOD content, which now accounts for one-fifth of dynamically delivered premium video ad views, up from 16% during the year-earlier period and just 6% in Q3 2015.

Together, then, OTT devices and STB VOD comprised 49% share of premium video ad views for the quarter, up from 38% share a year earlier.

In terms of ad view volume, STB VOD was the fastest-growing on a year-over-year basis (+54%), followed closely by OTT devices (+47%). FreeWheel says that “in the last year, many premium publishers increased dynamic monetization of ad inventory on set-top boxes as a way to capture revenue from viewing beyond the C3 and C7 windows.”

OTT devices and STB VOD platforms are predominantly used for long-form and full-episode content, offering the lean-back experience that the TV set is known for.

That type of content is also seeing big gains, per FreeWheel. Indeed, 80% of premium ad views came during full-episode (57%) or live (23%) content, compared to just 20% during clips.

In terms of content types, the vast majority (93%) of time spent with full episodes is for Entertainment content, while for live viewing Sports predominates (74%). (Live monetization refers to digital simulcasts of linear TV broadcasts and digital-only events.)

Separate quarterly data from Ooyala [download page] finds continued growth in digital video viewing on mobile devices, with smartphones alone accounting for a majority (51.1%) of video plays in July for the first time.

But for premium video, it seems as though viewing experiences are migrating back to the living room – or at least the TV set.


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