TV Trends: Video Ad Views on Smartphones and OTT Devices Skyrocketed in Past Year

TV Trends: Video Ad Views on Smartphones and OTT Devices Skyrocketed in Past Year

SAN DIEGO, CALIF. (TheStreet) — Digital television viewers are watching a growing number of advertisements on their smartphones and over-the-top-enabled (OTT) devices such as Apple (AAPL) TV, Roku, and Internet-connected gaming consoles like Microsoft’s (MSFT) Xbox, according to the latest quarterly report from video ad management platform FreeWheel.

More than a quarter of digital video revenue generated in the third quarter, 27%, came from smartphones, tablets and OTT devices, representing a material change in the digital video advertising world from one year ago. Video ad views on smartphones and OTT devices in the third quarter skyrocketed by 77% and 208% year-over-year, respectively, according to the report.

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FreeWheel analyzes usage and monetization around professional, rights-managed video content on a quarterly basis and considered 50 billion video views from the first half of 2014. On the whole, the firm found that total digital video views grew by 23% in the third quarter versus the same three-month period in 2013, and advertising views outpaced video views, growing 30% year over year.

The report’s findings highlight how mobile and OTT platforms are becoming increasingly important monetization areas for premium content providers, and show that digital video viewers are amenable to TV-like advertising across various devices — even if they must enter subscription credentials to access content.

Ad views associated with video content requiring some type of user authentication increased 386% over the year ago quarter. OTT devices played an important role here too with these streaming devices accounting for nearly a quarter (22%) of all authenticated ad views.

“As Programmers put more content behind authentication walls, viewers are following in droves: 46% of long-form and live video ad views now come from authenticated users,” FreeWheel said in its report.

The report suggests a number of important trends for the future of television, not least of which is that digital content is a highly monetizable asset. With nearly half of all long-form and live digital video ad views now coming from authenticated users, advertisers and premium content providers can still capitalize on the shift in consumer behavior with content locked behind a paywall.

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