The annual total TV advertising figures are in, showing a double-digit increase in spend over the last year buoyed by significant increases into BVOD services.
According to Think TV’s figures, total TV revenue reached $4.3 billion for the full-year to 30 June 2022, up 11 per cent year-on-year. Driving growth was BVOD advertising spend, which increased 53 per cent over the same period to reach $426 million. The latter figure encompasses BVOD platforms 7plus, 9Now, 10 Play, Foxtel Go, Foxtel Now and Kayo.
The figures also showed BVOD revenue experienced significant growth in the second half of the financial year, up 44 per cent to $208 million. This was a continuation of strong first-half BVOD results.
Overall, TV advertising revenue in the second half was $2 billion, up 7 per cent compared to the same period ending June 2021. The total TV advertising market includes metropolitan free-to-air, regional free-to-air, subscription TV and Broadcaster Video on Demand (BVOD) and excludes SBS.
Think TV figures also showed metropolitan free-to-air networks saw 4.3 per cent growth during this period to reach total spend of $1.3bn. For the full year, metropolitan free-to-air advertising revenue hit $2.8bn, up 8.7 per cent year-on-year. By comparison, revenue FTA saw 4.6 per cent growth in the six months to 30 June 2022 to $327.4m, and 5.9 per cent growth over the full year to reach a total of $678m.
The yearly figures include a couple of significant advertising opportunities on TV including the delayed Tokyo Olympics last year, as well as the 2022 Federal Election. They also reflect advertising continuing to perform strongly after the initial tightening of budgets at the onset of the Covid-19 pandemic.
“In the last 12 months, advertiser support for Total TV has gone from strength to strength. Despite – or perhaps because of – difficult conditions and continuously evolving audience behaviours, more and more advertisers are turning to proven media to drive their business growth,” ThinkTV CEO, Kim Portrate, commented. “These figures are a timely reminder that the millions of Australians reached every day convert into customers for the brands advertising on TV.”
Read more: Lessons from Tokyo: The anatomy of BVOD viewing
While the federal election and the Olympics drove revenues for TV, Portrate told CMO the events themselves didn’t change the amount of inventory available across the platform.
“We saw a different mix of advertisers during those key events but unlike digital platforms, we had the same amount of regulated space and it’s a finite supply,” she said.
Overall, Think TV was pleased rather than surprised at the general health and robustness of the total market. “This speaks to a commitment from advertisers to ensure media is a core component in brand growth,” Portrate said.
Portrate also noted the strength of BVOD as Australia’s fastest growing media channel given its reach, scale and effectiveness.
“More advertisers are coming to understand BVOD’s power to shift sales just as more consumers are live streaming TV content more often. Given that, BVOD’s growth is poised to continually outpace online video competitors in the coming months and years,” she said.
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