Posts for 'Rhythm New Media'

  • iPad Users' Click-Through Rates On Video Ads Are Running Higher

    Click-through rates on video ads shown to iPad users are much higher than similarly formatted ads shown to iPod Touch, iPhone or Android users according to new research released today by Rhythm New Media, a large mobile video ad network.

    In analyzing their viewers' behavior in Q3, Rhythm found that iPad users' click-throughs on Rhythm's "interactive pre-roll" unit were 2.32%, which is 58% higher than the 1.47% for the iPod Touch, which came next. Rhythm CEO Ujjal Kohli, who I spoke to last week, said the data suggested the iPad's larger, more immersive environment is leading to more engagement with ads and users' higher inclination to click-through, particularly when more video is involved.

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  • For Mobile Video, Primetime Continues to be Most of the Time

    Rhythm New Media's Q2 '10 mobile video advertising report, which is being released this morning, continues to show how mobile video consumption is spread throughout the day. Unlike online video or traditional TV, where there's a large difference in viewership between the 8pm-11pm primetime daypart vs. other dayparts, the Rhythm data (see below) shows a more even distribution. Rhythms data is based on about 1 billion content views and 75 ad campaigns run during the quarter. Adam Wright reported similar findings in Rhythm's Q1 '10 report.

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  • Mobile Video Ad Network Transpera Raises $9 Million

    Mobile video ad network Transpera is announcing this morning that it has raised a Series C round of $9 million, led by BlackBerry Partners Fund, with participation from existing investors Flybridge Capital Partners, First Round Capital, Intel Capital and Labrador Ventures. Transpera CEO Frank Barbieri told me yesterday that total company funding to date is $18 million.

    In addition to the financing, the company is also now promoting its network as "The Audience Network," reflecting what Frank said are significantly higher engagement metrics Transpera campaigns are achieving vs. comparable online video ones. Transpera has worked with brand research firm Insight Express to study performance of 5 recent video ad campaigns that ran on Transpera's network. Compared to norms that Insight Express keeps for similar online video campaigns, for the Transpera campaigns it found 9 times higher increase in purchase intent, 19 times higher increase in aided awareness, 4 times higher increase in unaided awareness and 2 times higher increase in ad awareness.

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  • Rhythm New Media Releases Bullish Stats on Mobile Video Usage and Ads

    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 jumped out for me: 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, I compared 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.

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  • Mobile Video Advertising Market Shows Strength

    Mobile video advertising is showing strength, benefiting from consumer adoption of the "mobile Internet," strong growth in video-capable smartphones and improving availability of high-quality content for mobile devices.

    I gained further insight on the mobile video ad opportunity in a conversation yesterday with Ujjal Kohli, the CEO of Rhythm New Media, a firm focused on mobilizing and monetizing TV programming that has raised $27 million to date from a group of blue-chip of investors. Later this week Rhythm will formally unveil "RAMP," the Rhythm Advertising Media Platform, a mobile video ad network targeted to brands already advertising on TV who now also want to have a mobile presence.

    Ujjal makes a strong case that mobile video is an ideal environment for brand building, and that it addresses many of the challenges that TV advertising itself is facing (clutter, distraction, fragmentation, inadequate frequency/targeting/measurability). Ujjal believes that the nature of mobile video consumption, with its relatively short duration, focused user sessions gives brands a renewed opportunity to engage their target audiences with hard-to-skip messages, not only in the prime-time window, but throughout the day as well.

    Rhythm has been helping stoke the market for high-quality mobile video content by building video apps for clients like Discovery, E! Entertainment, TMZ,, Family Guy and others. App building has been a means to an end for the Rhythm, which is primarily focused developing its mobile video ad network. In Q4 the company has sold and run 20+ campaigns, for brands like MasterCard, Nikon, Toyota, Marriott, Anheuser-Busch and others. These are almost always 15 second spots repurposed from TV campaigns which is no surprise, as the mobile market is not yet big enough to warrant custom creative.

    Ujjal explained that a key Rhythm differentiator is that its ads allow interactivity, or the ability for the user to click on an ad's call to action, as is common online. Rhythm has devised a way to incorporate interactivity in ads shown against videos viewed on iPhones, where the use of QuickTime doesn't enable linking. Ujjal said that click-through rates for its "interactive pre-roll" unit fall in the 2%-6% range, while a "full page" ad unit used for mobile photo viewing, (e.g. slide shows on generate click-throughs up to 11%. Ujjal would not specify what volume of ads Rhythm is serving, except to say it's in the millions/month and that the CPMs are higher than in online video or TV itself.

    I've been very bullish on mobile video for some time now, as I believe it is following a similar growth pattern as online video. The macro-trends supporting mobile video's growth are impressive: Nielsen believes that in Q4 '09, 40% of all phones sold will be smartphones and that by 2011 they'll be majority. By then Nielsen forecasts 90 million a month will be watching mobile video. According to its Q3 '09 A2/M2 report, almost 16 million are now watching mobile video/month, up 53% since Q3 '08. They are watching an average of 3 hours, 15 minutes/month. While this is inexplicably down a bit from a year ago, it's worth noting that the heaviest users, to nobody's surprise are age 12-17 (7 hours, 13 minutes) and 18-24 (4 hours, 20 minutes). As these segments age they'll no doubt carry along their mobile video expectations.

    Another dynamic sure to have a positive impact on mobile video consumption is the intensifying competitive battle between carriers and between smartphone manufacturers themselves. The recent AT&T-Verizon ad war about their 3G availability is a glimpse of how these companies will use network capacity (key to a positive video experience) as a competitive lever. On the handset side, there is hyper activity: Motorola's Droid is off to a respectable start, a bevy of Google's Android-based smartphones are due in 2010, and, complicating things further, Google plans to release its own "unlocked" (i.e. carrier neutral) Nexus One smartphone next year. While the iPhone opened the smartphone floodgates, many others are now rushing to get a piece of the action.

    The biggest uncertainty impacting mobile video's growth is the wireless networks' ability to keep up . All the snazzy smartphones in the world won't matter if users can't get 3G or better access to watch quality video. But, if broadband is any guide, wireless carriers will build out capacity to meet demand, driving up data plan subscriptions and their own ARPU. Broadband also illustrates that as the necessary building blocks fall into place, content providers will be motivated to take part, providing consumers with ever more choices. While it's still early days, taken together it looks as if big things lie ahead for mobile video and for those like Rhythm who can help monetize it.

    What do you think? Post a comment now.

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