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Friday, May 28, 2010

Bullish Stats on Mobile Video Usage and Ads

We see a bit of hesitation when it comes to mobile content, but here's some intersting info:
from Adam Wright/VideoNuze:

A report this morning from Rhythm New Media, a firm that develops mobile video apps for TV programs and runs its own mobile video ad network, provides fresh reasons to be bullish on mobile video. The report is based on an estimated 250 million video views/month that Rhythm has tracked in Q1 '10 on its mobile video platform. Two key stats that jump out: an average 86.7% completion rate and a 1.7% click through rate for its 15-second pre-rolls. The latter is roughly consistent with data Will reported from Rhythm about 6 months ago. It is noteworthy that Rhythm's click through rates are holding steady as it scales up.

To get a sense of how Rhythm's mobile data stacks up against online video advertising data compare it to a report eMarketer and YuMe released based on Q4 '09 data, which showed a steady decline in click through and completion rates for pre-rolls. Rhythm's completion and click through rates are 24% and 56% higher than those in the eMarketer/YuMe report. While it's a bit of an apples vs. oranges comparison because YuMe's much larger network includes many different types of video content (vs. Rhythm's TV program only) and the ads YuMe surveyed were a mix of 15-second and 30-second spots (vs. Rhythm's 15-second only), the differences may be an early indicator of the contrast between mobile and online video.

Rhythm's CEO Ujjal Kohli explained that the numbers underscored his view of how mobile video is a perfect compliment to TV. He said that as opposed to the fast-paced multi-tasking of online video, mobile video is consumed in a more focused manner, while still retaining all of the interactive features and metrics of online. This is a plausible explanation for why the Rhythm completion rate can be much higher than the online video industry's average - fewer distractions and more focus on the content.

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