Page 30 - Adnews Magazine May-June 2021

Agenda
“BVOD, Australia’s fastest growing advertising medium, is thriving in audience and advertis- ing revenue growth,” she says. “More than 1.6 million hours of BVOD content is consumed every week Australians embrace the platform. And in the second half of 2020, BVOD revenue increased a healthy 52.7% to $133 million.
“In many ways BVOD is the ideal companion for linear TV. Linear delivers high-velocity reach while BVOD offers targeted precision — it’s the perfect combi- nation to capture, captivate and convert customers.”
The second area of growth for TV will come from VOZ, the new OzTAM database coming in late 2020 that will allow targeted advertising in ways not previ- ously possible.
The pandemic had a large impact on the world of media. Rising advertising spend on linear TV can largely be attributed to Australia’s handling of COVID-19, according to Will Chapman, sen- ior industry analyst at IBISWorld.
Clockwise top left: Nine's Richard Hunwick, The Block, LEGO Masters, Love Island and
The Weakest Link.
“With international borders closed, and economic activity household incomes supported through the JobKeeper program, a significant amount of discretionary spending that would otherwise be spent on domestic and international holidays is being redirected to other markets,” he says.
“This spending has supported a range of retail and other industries, with ABS data showing strong growth in household goods retail spending during the past year compared with levels recorded pre-COVID-19.
“In particular, as consumers have spent more time at home, they have spent more on home renovation projects and furnishings.
“This trend has also been partly driven by rising house prices in capital cities, which have produced a ‘wealth effect’ that has bolstered consumer sentiment and spending.
“Advertisers have consequently increased their spending to reach these consumers and attract a share of this expenditure.”
Steve Allen, director of strategy and research at independent media agency Pearman, sees growth and recovery for the next two years.
“The marketing/effectiveness/ROI effort by ThinkTV should go to stemming the structural decline beyond that,” he says. “However, we do not see TV going back to any meaningful growth long-term.
“Very modest revenue growth, through the work by ThinkTV in the past couple of years, should boost growth as they use both research and CMO advocates, demonstrating TV’s effectiveness, plus ROI, to bring TV brand performance into focus, and marketers back to the medium.
“In addition, like all media, travel and tourism is yet to truly return and was worth more than $100 million for TV.”
And BVOD is huge, with growth up 52.7% in the last half year to $133 million, and will hit around $325 million by year’s end.
Most marketers who use TV have sales captured in ABS Retail Sales series. This has run hot for a year now, at twice the rate of growth of the previous decade.