Report: BVOD drives positive end to volatile year for TV advertising

Latest ThinkTV 2020 figures show TV ad spend increased by 0.5 per cent in the last six months of the year

Broadcast video on-demand services have proven the exceptional performer in the TV category during what was a volatile year for the television ecosystem, ThinkTV’s latest figures show.

The group has released its six-month and full-year figures for TV advertising spend in 2020, finding TV recorded a 0.5 per cent increase in revenue for the six months to 31 December 2020 despite experiencing significant ups and downs as a result of the COVID-19 pandemic. This represented $1.96 billion in revenue.

The star element was BVOD, which saw 52.7 per cent growth over the six-month period. Services incorporated into this figure include 7Plus, 10 Play, Kayo and Foxtel Now. The worst performer was regional free-to-air, which fell 4.8 per cent over the six-month timeframe.

In total, the TV market recorded $3.45 billion in advertising revenue for the full year, down 10.7 per cent year-on-year. Within this, BVOD was up 40 per cent, while metro FTA was down 10.5 per cent and regional FTA down 15 per cent.  

ThinkTV CEO, Kim Portrate, BVOD revenue is performing exceptionally well in line with significant audience growth.

“The medium has established a new baseline for viewership with more than 1.6 million hours of BVOD content being consumed every week with more and more Australians – advertisers and consumers alike – embracing the platform,” she noted.

Overall, Portrate summarised 2020 as a difficult year that ended with some positives.

“The effect of the pandemic was felt keenly in the September quarter before the TV market finished the calendar year on a very promising note,” she said. “Despite COVID-led market volatility, TV has, and continues to, play a pivotal role in communicating brand messages at scale driving business results in both the short and the long term for advertisers.”

Figures released by SMI last week also illustrated an upsurge in advertising spend in the last months of 2020. Its December figures found TV ad spend had experienced an 11 per cent increase in the last month with revenue growth of 15.3 per cent for the December quarter and a decline of only 1.2 per cent for the December half.

SMI said total ad spend for the December quarter was up 5.4 per cent driven by digital, which experienced a 15.9 per cent increase in the last quarter to soar to $223 million in bookings.  

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page, or join us on Facebook: https://www.facebook.com/CMOAustralia.

 

 

 

 

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

Extremely informative. One should definitely go through the blog in order to know different aspects of the Retail Business and retail Tec...

Sheetal Kamble

SAP retail chief: Why more retailers need to harness data differently

Read more

It's actually a nice and helpful piece of info. I am satisfied that you shared this helpful information with us. Please stay us informed ...

FIO Homes

How a brand facelift and content strategy turned real estate software, Rockend, around

Read more

I find this very strange. The Coles store i shop in still has Flouro lights? T though this would have been the 1st thing they would have ...

Brad

Coles launches new sustainability initiative

Read more

Well, the conversion can be increased by just using marketing, but in general if you are considering an example with Magento, then it is ...

Bob

How Remedy is using digital marketing and commerce to drive conversion

Read more

yo nice article

Bob

6 Ways to ramp up Social Media to Your Web Design

Read more

Blog Posts

9 lessons from 7 months of relentless failure

The most innovative organisations embrace failure. Why? Because it is often through failing the most creative out-of-box thinking happens. And with it comes vital learning opportunities that bring new knowledge and experience into teams.

Jacki James

Digital product lead, Starlight Children's Foundation

Why conflict can be good for your brand

Conflict is essentially a clash. When between two people, it’s just about always a clash of views or opinions. And when it comes to this type of conflict, more than the misaligned views themselves, what we typically hate the most is our physiological response.

Kathy Benson

Chief client officer, Ipsos

Brand storytelling lessons from Singapore’s iconic Fullerton hotel

In early 2020, I had the pleasure of staying at the newly opened Fullerton Hotel in Sydney. It was on this trip I first became aware of the Fullerton’s commitment to brand storytelling.

Gabrielle Dolan

Business storytelling leader

Sign in