Page 44 - AdNews April 2020
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 Social, after conquering reach, chases premium engagement
Social media giants have been able to pull in advertising dollars primarily off their large audiences. But now they’re boosting premium content to strengthen their value to advertisers on all fronts, with a focus on video.
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Media sales executives gathered at a roundtable late last year to launch Advertise or Die, a campiagn created after a tough year for the adver- tising market. With Ten, Seven, Nine and Foxtel all onboard, they argued they deserved a bigger share of brands’ media budgets because, while digital platforms, such as Facebook and Google, reach more Australians, the premium content of traditional media drives quality engagement.
Consumers are expected to spend 84 minutes a day watching online videos this year, up 25% from 67 minutes in 2018, according to PwC. Advertisers are following, with online video advertising predicted to grow by 22.4% to $3.8 billion in Australia between 2019 and 2023. Linear TV ad revenue is forecast to slip by 1.1% to $3.4 billion and broadcast-on-demand (BVOD) is expected to grow 27.7% to $441 million.
In this battle for advertising dollars around video, social media compa- nies have been able to boast significant reach figures to advertisers, com- pared to traditional TV.
In Australia, where social media users are some of the most active in the world, 15 million people are on Facebook and 6.4 million on Snapchat, or, 60% and 25% of the total population, respectively. On the other hand, the TV industry as a whole, both free-to-air and subscription, attracts 19.6 million Australians, or 82.6% of the population in people-metered markets, according to a 2017 Nielsen report.
The response from TV executives to double down on the quality of their content was a common theme at The Future of TV Advertising conference in Sydney last month. It has also been reinforced with the formation of the PremiumContentAlliance, which is focused on proving the effectiveness of advertising in premium digital content.

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