In this week’s Week in Review: Vista Equity acquired a majority stake in Mediaocean, Microsoft quit ad-tech and Vivendi acquired Dailymotion. For a weekly summary of industry news and other VAN interviews and videos, sign up to the weekly Video Round-Up.
Vivendi Acquires Dailymotion
French media holding company Vivendi has acquired an 80 percent stake in Orange’s video-streaming site Dailymotion, in a deal worth about $241 million. Negotiations have been underway since April, according to several reports.
Microsoft Pulls Out of Ad Business, AOL and Appnexus Pick Up Slack
Microsoft has announced that it will be pulling out of the advertising business, with AOL becoming the seller of all display formats, including mobile and video, for the Microsoft portfolio across nine markets (Brazil, Canada, France, Germany, Italy, Japan, Spain, United Kingdom and the United States). Bing will now power search and search advertising across the AOL portfolio of sites and Appnexus will become the programmatic technology and sales partner in 10 markets including Austria and Sweden.
Vista Equity Partners to Acquire a Majority Stake in Mediaocean
Mediaocean has announced a majority stake of the company will be acquired by Vista Equity Partners. The transaction is expected to complete in Q3 2015 and continues the trend of private equity investment in ad-tech. The deal values Mediaocean at about $720 million according to Ad Exchanger.
Facebook Shares Ad Revenue with Video Creators
Facebook will share ad revenue with video creators using its site from the autumn in a move similar to YouTube. The revenue share will not apply to all videos seen in Facebook’s News Feed; but a new feature called Suggested Videos will be rolled out.
15 Percent of Britons Block ‘Annoying’ Ads
Almost one in seven British adults online are currently using ad blocking software – mainly because they find online ads interruptive or annoying – according to the Internet Advertising Bureau UK Ad Blocking report, conducted by YouGov. Men and 18-34 year olds are most likely to block ads and nearly half of adults online are unaware that ads fund content at little or no cost.
Ninety Percent Don’t Click on Ads on Mobile Devices
Nine out of ten mobile internet users don’t click on an advert, even when it is of interest to them, according to the Brand Impact Survey from Widespace. The survey also found that ‘swipeable’ ads were more effective in terms of recall than static ones.
Facebook Tests Charging for Video Ads After Playing for 10 Seconds
Facebook is testing a new way of charging for its autoplay ads. Advertisers can still pay once their video ads come into view, on a cost per thousand impressions basis, or they can choose to only pay once their ads have played for at least 10 seconds, or on a cost-per-view basis.
Secret Sport Screening Prevalent
Nearly half of Britons have tuned into live sport on their portable screens at work according to research commissioned by Sky’s NOW TV. Over a quarter admit to watching sport in secret, either booking covert meeting rooms to keep up with the latest score or using their second screens for streaming, even in the bathroom.
Adult Video Viewing on the Increase
Over 136 billion adult videos will be watched in 2015 alone, with this set to grow to 193 billion by 2020, according to Juniper Research. On a global scale, each smartphone user of adult content is expected to watch an average of 348 videos this year. Videochat will continue to dominate.
UK Programmatic Ad Spend Close to £1bn
Nearly one fifth (18%) of video ads are now traded programmatically, while almost half of online display ads in 2014 were bought through programmatic technologies, according to the Internet Advertising Bureau (IAB) UK’s Media Owner Sales Techniques study. Of the £2.13 billion spent on display ads across the internet and mobile in 2014, 45 per cent (£960 million) was traded programmatically – up from 28 per cent in 2013.
Netflix Users See Traditional Pay-TV Less Attractive
More Netflix users in the US are cutting the cord. In a survey of 829 current Netflix subscribers, CutCableToday found that just 67 per cent still have a pay-TV service (cable or satellite), and of those, 9 per cent plan to cancel their pay TV service.
Original Content Tops Binge Viewing
Binge viewing (watching more than three episodes of a series in a day) continues to rise in both perception and popularity according to the second annual TiVo Spring 2015 Binge Viewing Survey. Negative perception of binge viewing has greatly decreased, and 92 percent of respondents reported binge viewing at some point.
UK Cable Network Revenues Up 3% Over Four years
In the UK, total revenues increased at a compound annual growth rate (CAGR) of 3.1 percent over the past four years to $5.6 billion while programming costs fell at a CAGR of 0.8 per cent to $3 billion according to SNL Kagan.
FreeWheel Grows and Hires New Talent
FreeWheel continues its European expansion, relocating to a larger office in Soho and appointing Jamie Caras, as Commercial Director for the UK and Ireland, and Emmanuel Josserand, as Marketing Director, Europe.
Ooyala Acquires Nativ
Ooyala has acquired Nativ in order to expand its technology stack into video production, pre-production and broadcast planning for hybrid OTT and on-air video services.
Eurosport Wins Olympics Rights
The International Olympic Committee (IOC) has confirmed that all TV and multi-platform broadcast rights in Europe for the four Olympic Games in the 2018–2024 period have been awarded to Discovery Communications, the parent company of Eurosport.
This Week’s New Hires
Thomas Servatius Joins smartclip as New CTO
smartclip has appointed Thomas Servatius as Chief Technology Officer. Servatius joins smartclip from IPONWEB, where he was Head of Client Services.
Millennial Media Appoints Andrew Moore to Head Up EMEA
Millennial Media has appointed Andrew Moore as managing director of Platform EMEA. He joins them from SpotXchange.
Altitude Digital Adds Brian Kane to Board of Directors
Altitude Digital has added Brian Kane to its board of directors. Kane is currently the COO of Sourcepoint.
Mike Zaneis Named Permanent CEO Of TAG
Mike Zaneis, the interim CEO of TAG, an industry group formed last year to coordinate industry’s response to fraud and other supply chain issues, has been made permanent.
Ad of the Week: Nike, ‘Find Your Fast’, Must Be Something
Nike challenge viewers to run their fastest mile in this stunning and star studded video.