The new Q2 2015 Global Video Index by Ooyala has revealed that 49 percent of all ad impressions for publishers were on mobile devices during the quarter, an 11 percent increase from Q1 2015. Further, the report shows 44 percent of all online viewing is now on mobile devices. Together, the trends suggest advertisers are shifting ad dollars to match the influx of mobile viewing and to serve a new generation of TV viewers more comfortable watching content on mobile devices.

Mobile Viewing Continues To Climb

Since Q2 2012, mobile viewing has grown at an annual compound growth rate of 111 percent, peaking at 44 percent of all online viewing in Q2 2015. This growth represents a stunning 844 percent climb since 2012. This is the first quarter mobile viewing hasn’t increased at a double-digit rate. Signs point to double digit year over year growth, however, ZenithOptimedia expects global online viewing to grow by 23 percent in 2015, and another 20 percent in 2016, and attributes the majority of growth to mobile viewing as smartphones and tablets penetrate global markets.

In particular, the Ooyala report shows that smartphones received eight times more plays than tablets this quarter. The data suggests that by year’s end 50 percent of all online video starts will be on mobile devices as smartphone screens become larger, viewers increasingly watch long-form premium content, and more mobile operators package premium content into their services.

Programmatic Proves Profitable In Europe

The report further indicates the continued growth of programmatic trading among premium broadcasters and publishers. From the beginning of March 2015 through June 2015, these companies saw their eCPMs increase more than 25 percent on average, while their collective programmatic advertising revenue grew 119 percent.

The growth is accredited to the increase of programmatic direct deals. Deal ID transactions, which allow for one-to-one deals in a programmatic environment, grew at a monthly rate of 79 percent in Q1 2015, and in Q2 deal IDs grew more than two times that rate, at 176 percent. Also in June 2015, eCPMs from programmatic direct deals were more than double those traded via marketplaces. This demonstrates that large brands and advertisers are more comfortable purchasing premium video inventory in private programmatic settings. In fact, eMarketer expects programmatic direct deals to reach $8.57 billion in the U.S., representing 42% of all programmatic ad spend by 2016.

“It's all about mobile. From the array of devices on which we watch TV to the way the industry has begun to treat ad inventories, all signs point to mobile as the key to a bigger, better TV business,” said Principal Analyst Jim O’Neill of Ooyala.

“This quarter’s growth of broadband subscribers and the corresponding loss of pay-TV subscribers, paired with the increase of digital ad spend by brands and agencies is the evidence that business models, budgets and strategies from broadcasters to advertisers are changing dramatically to align with viewer behavior.”

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