Page 18 - AdNews April 2020

Agenda
bigger in the house so it’s still powerful and engaging.
“But how relevant is it to the new audiences that are coming through, is what we’re getting asked more and more from clients.”
Echo says TV is a part of everything a younger audience does. For example, a younger audi- ence is spending an hour each day on TikTok. It’s still film content but the hour spent is not watching
news or another program. “They’re watching one-minute clips that they’re engaging with for an hour,” he says. “That time has been shifted away from
television.
“As a medium itself at a macro
level, TV is still powerful and engaging and relevant. But it’s when you start getting into the nuances that we’ve got to start talking about relevancy.”
When it comes to advising cli- ents, Echo says it’s not a case whether online is better or not. It’s whether the channel is right or not
Brett Poole, Finecast
Outlook
2019
• ThinkTV calculates the total television market in Australia fell 4.8% to $3.86 billion.
• Metropolitan free-to-air was down 6.1% to $2.61 billion.
• BVOD grew almost 40% to $154.46 million.
2020 Forecasts
• Free-to-air market to remain week.
• A drop of around 5% in the
six months to June, 2020, according to estimates made by Nine Entertainment given in its half year results.
• Macquarie Wealth Managemen sees metro free-to-air TV down by about 7% in the first half.
BVOD
• Macquarie Wealth Management: Strong growth in 2020 calendar year. “We estimate BVOD ad dollars to be up 30% this year.”
• Magna: The broader video market is forecast to grow more than twice the pace of digital’s 6.1% in 2020. Video is projected to increase by a further 12.5% with BVOD representing roughly 13% of the total video market and a minimum growth expectation three-fold that of total video, or about 40%.
Ad market
• Investment bank Jefferies: “Stabilisation in the advertising market has not materialised
in 2019 and, based on our channel checks, the outlook for 2020 is not looking great either. Advertisers remain cautious due to the economic slowdown, and pipeline visibility of media agencies and publishers remains short. Digital platforms are also experiencing slower growth although we expect the shift
of ad spend from traditional to digital media to continue.”
Macquarie Wealth Management:
• An uncertain 2020 follows a
disappointing 2019. “Traditional ad market platforms saw notably softer trends in 2019 due to a combination of structural and cyclical factors. Cyclical weakness, in part, centred around a weaker consumer environment and impacts from a tightening in access to consumer finance, with the latter impacting key segments including Financial Services and Auto. Government spend was also weaker.”
for the objectives and whether or not TV or online will earn the attention of the target audience.
“Our job is to agnostically assess ALL channels against the audience and our objectives and once we have landed on ‘screens’ as a channel we then work through the specific formats within that and the share required to hit our objectives,” he says.
Echo agrees that 2019 was a tough year for the entire ad market in Australia and TV was not immune to this.
“TV is faced with declining audiences which means that media plan- ners/buyers could potentially shift spend across different formats/chan- nels,” says Echo.
“It is important for the networks to be both agile and relevant. Agile in the way that they sell/price their inventory but also in how they look to create different opportunities through consolidating their buying plat- forms to help ‘grow the pie’.”
Softer market
Victor Corones, managing director of MAGNAGLOBAL (part of IPG Mediabrands) in Australia, says a softer market doesn’t directly translate into improved buying efficiencies in the television market.