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Ooyala: 2016 Online Video Industry Predictions

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First and foremost, the current wave of market consolidation will continue and even gain momentum in 2016. The industry as a whole has made substantial gyrations around the world, such as AT&T purchasing DirecTV for $49B in the U.S. or Liberty Global paying another $88M for Irish broadcaster, TV3. Ooyala has been part of this trend as well. Over the past 17 months, we were acquired by Australian-based telecom leader Telstra, and subsequently acquired ad tech company Videoplaza in Sweden and media logistics company Nativ in London. Expect to see more consolidation in 2016 with a particular emphasis on OTT-delivered content.

We expect the TV NewFronts event to be a major wake up call for the linear TV advertising business. Simply put, it’s moving online. Expect to see double-digit percentage decline in advertisers’ spend from last year. On the flipside, expect IAB’s new UpFronts event be the industry’s silver lining, showing promise that broadcasters—and publishers that are increasingly morphing into broadcasters—will derive large revenue streams from cloud-based distribution models. Indeed, this year, a handful of the new entrants to UpFronts are Ooyala customers. We’re helping them build and deliver premium experiences across all screens, and enabling them to secure large profits in 2016 from TV ad dollars migrating online.

Finally, in the wake of the industry being harshly scrutinized for poor ad experiences, ranging from how ads are displayed, to how they are measured to the creatives themselves, expect content creators to turn to solutions with analytics at the core. In particular, expect them to turn towards programmatic platforms, like Ooyala Pulse SSP, to buy highly targeted audiences across premium inventory. We already see this move happening rapidly in the OTT space. In fact, AdExchanger recently stated programmatic will account for anywhere from 55-70% of global digital ad spend in 2016.

Expect to see programmatic trading find a firm footing in linear TV as well. It will be focused on tailoring the advertising to the user on the device they prefer, time, location and in the right context to keep them engaged longer.

See the rest of 2016's Executive Predictions in "Related Articles" below, or you can download the entire batch as a PDF.

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2016 Online Video Predictions: An Introduction

Leading online video industry executives share their insights into what to expect in 2016