Magnite

Magnite (NASDAQ: MGNI), is the world’s largest independent sell side advertising platform that combines Rubicon Project’s programmatic expertise with Telaria’s leadership in CTV. Publishers use our technology to monetise their content across all screens and formats including desktop, mobile, audio and CTV. And the world's leading agencies and brands trust our platform to access brand safe, high quality ad inventory and execute billions of advertising transactions each month.

TV but not as you know it: insights for marketers exploring BVOD

Since the start of 2020, Broadcaster Video on Demand (BVOD) consumption has been on the rise in Australia with more than 1.6 million hours of BVOD content consumed every week, an increase of 30% from the previous year.

Reflecting this growth, marketers are increasingly turning their attention to the medium. But while BVOD is proving its worth as one of the most effective ways to reach engaged audiences, there are five key areas that marketers need to consider before taking the plunge: content, live or on demand, audience, experience and transformation.

Magnite’s Australian Managing Director James Young, spoke with some of Australia’s top broadcasters to gain their insights into these five areas, capturing the opportunities and challenges for marketers in BVOD advertising in 2021.  

The importance of content

Australian viewers are spoilt for choice due to the extensive library of professionally produced quality content made available by local and international broadcasters. 

According to SBS Australia’s National Digital Sales Manager, Danika Johnston, the rise of BVOD consumption is no coincidence– consumers have developed an insatiable appetite for good content that they can watch on the big screen.

What role does content play in BVOD Advertising?
Audiences have a huge expectation for quality content in the BVOD landscape. Because this content is generally free content, audiences expect advertising to be associated with it. However, they expect quality advertising that is as seamless and minimally intrusive as possible. Content that allows for a natural interruption for quality, not quantity, of advertising messages is the value proposition here.

Why does great TV content matter to advertisers?
If content is of quality and offers audiences a strong sense of engagement and emotional delivery, they will be more likely to be receptive to advertising messaging. Quality over quantity is the holy grail. Good content also attracts a loyal audience base and a loyal customer is the pinnacle for all brands and marketers.

If the same audience is accessible via a social video platform, what is the upside to reaching them when they’re watching broadcast content instead?
Audiences are looking for ‘lean in’ content on BVOD platforms – content they have searched for and offers them a sense of escapism and true lean-in engagement, content on their terms. This is very different to the ‘lean back’ passive type of content on social platforms.

Advertising needs to suit this lean-in mentality – messaging that engages, not offends. BVOD is a natural space for engagement – it’s a natural partnership.

How has your BVOD strategy informed your commissioning/ content/ program strategy?
At SBS On Demand we offer a catalogue over catch-up content strategy – nearly 70% of our content is exclusive to On Demand, not just re-purposed from our linear broadcast network or traditional ‘catch up’ viewing.

The other unique point to our BVOD programming strategy is our ad content load; we only run 5 minutes of ad content each hour. We take viewing engagement seriously and we always put the user experience first – that respectful relationship of considered volumes of advertising messages is a very important one.

How can advertisers make best use of context with content?
Data and targeting in BVOD allow for advertisers to carefully consider the placement of their brands messaging into content. Contextual relevance plays an important part in digital advertising as you want to target and engage with your customer with balance, not saturation.

Remember that when your customer is engaged in long form content, they have a short window of tolerance – you need to target your message with relevancy and balance so it feels almost uninterrupted and as though your message was naturally designed for them.

Live or On Demand?

Live sports is a huge part of Australian culture and must-see live content is rising in both interest and attention across Australia. Nev Hasan, Executive Director of Agency Sales at Foxtel Media’s sports subscription service Kayo, is an advocate for reaching and engaging audiences across a broad range of sports.

How do you think screen-based live sport consumption has changed over the last twelve months?
There has been a surge in screen-based sports consumption with the pandemic keeping viewers at home, and the return of sports signaling a return to normality for Australians. Over the last year we've seen massive demand for sports streaming across Foxtel Now, Foxtel Go, and Kayo - audiences for the 2020 NRL season up 152% year-on-year, and AFL up 189% across these streaming platforms.

What does your audience want?
We always have to remember that Foxtel audiences are paying to view their content - so we have to ensure they have the best viewing experience. Sports first, advertising second is our mantra for this, and we aim to ensure that any advertising enhances rather than detracts from live sports. For example, on Kayo, we don't interrupt live sports with ads.

What do you see as the future of live sport consumption through a screen over the next 12 to 18 months? And in 5 years?
Over the next 12 to 18 months, we can expect the trend of customers engaging with sport via streaming services to increase, as more media players focus on the space. Connected TV will remain strong - people may not realise that the majority of Kayo viewing is done though the big screen, for example. 

We can also expect a trend of consumers being able to access one-off games as well as seasons. Another important aspect will be the expansion of sports beyond just games to providing more content beyond just live broadcast as media create a more sticky experience with more shows created around sports. As for 5 years’ time, let's get through the next 18 months first.

Read more about the opportunities and challenges for marketers with BVOD advertising:


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