FreeWheel: Video Monetization Report Q1 2015

With video ad views growing 43% year-over-year and video views at 40%, Q1 2015 kicked off what should be one of the strongest growth years since the inception of the premium digital video market.

This quarter, fortunately, the data tells a clear and familiar story: premium digital video continues to grow and mature at a rapid rate. This progression is validated by notable increases in viewing of ultra- premium content, MVPD-authenticated users, new streaming devices, and trusted deep-pocketed advertiser

Similar to past quarters, long-form on- demand and live streams were the fastest- growing content dimensions (50% and 140% growth, respectively). TV Everywhere offerings saw astounding growth as well, with MVPD app viewership growing 147% year-over-year. Additionally, MVPD- authenticated viewing grew 328% year- over-year. After several quarters of triple- digit growth, authentication is now seen as “table stakes,” with 57% of Programmer long-form and live viewing coming from behind the authentication wall.

As more and more viewers use digital video to get their long-form and live content fix, devices that are tailor-made for such viewing have exploded in popularity. Over-the-top (OTT) streaming devices (such as Roku, Chromecast, gaming consoles, and Smart TVs) accounted for 8% of video ad views in Q1 2015, up 380% year-over-year.

Leading agencies and brands have embraced premium digital video’s value proposition. With its engaging content, hard-to-reach audiences and advanced targeting capabilities, marketers are shifting spend to digital video, aligning budgets to viewership. The demand for this quality inventory is reflected in the fact that 94% of Programmer ads were direct sold this quarter.

We are delighted to report on yet another quarter of growth and maturity led by “the new living room”: the same high-quality TV content that was traditionally consumed in the living room is experienced today by the same audience through a multitude of screens and locations. We look forward to the lively discussions and debates that these reports always seem to bring and cannot wait to report again next quarter!

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