Video publishing platform Ooyala recently published its Q1 2012 state of online video report. The company powers videos for more than 1,000 online publishers, and collects anonymized viewing data from more than 200 million unique users per month. So it’s got a pretty good grasp on the state of online video.
Here are several important trends the report points out.
Longer videos. Viewers are watching longer videos on all devices, but especially on mobile devices. Long-form content, which they define as more than 10 minutes long, now accounts for 41 percent and 46 of time watched on smartphones and tablets, respectively.
Likewise, time watched per video video play increased 37 percent and 58 percent in the first quarter on smartphones and tablets, respectively:
Huge growth in mobile video share. Mobile video gained a huge share of overall time spent watching videos in the first quarter. Smartphones gained 41 percent, while tablets grew 32 percent.
Tablets’ share of overall time spent watching videos spikes after 6 p.m., as people get home from work and begin using tablets:
Smartphones’ share of overall time spent watching video also rises in the mornings and evenings, but the increase is less dramatic than tablets. Ooyala believes mobile video is not eating into traditional television, but consumers are using them as second (or third) screens.
(Note: Ooyala uses mobile to mean smartphones.)
High engagement on tablets. Tablets have a very high level of engagement (defined as percentage of viewers who finish 75 percent of the video). For long-form content, 30 percent of tablets viewers were engaged, just below connected TV viewers at 34 percent:
On Google’s earnings call yesterday, some analysts honed in on a particular trend: declining cost-per-click rates, or CPCs.
Google’s ad revenue is determined largely by two factors: the number of clicks on ads (“paid clicks”) and how much advertisers pay for each click (“CPC”). The first number has been rising fast — it was up 39% in Q1 of 2012, compared with the previous year.
But the second number has started to decline, and was down for the second consecutive quarter (as compared with a year ago).
Google said that the factors driving CPC are very complicated, and include foreign exchange rates, rising mobile usage of Google (where advertisers pay lower prices per click), faster growth in developing countries (where prices are lower), and changes in ad quality all have an effect.
Most analysts seem to agree that CPCs, taken in isolation, are not the best measure of Google’s business. But if you’re looking for a reason why the stock went down today, other than the new class of stock the company announced, this might be it.