How BVOD is becoming a challenger to linear TV

It has been an interesting couple of years in the world of TV and video. Like so many industries, entertainment was transformed by the pandemic and has emerged on the other side looking a little different, but in an unexpectedly exciting way.

The shock of lockdowns led to an initial freeze on many marketing budgets, with the squeeze being felt particularly on TV budgets that on average dropped 9.8% in CAGR (according to PwC’s latest Australian Entertainment and Media Outlook). It didn’t take long to bounce back, but it did so in a slightly different way than expected, with BVOD (Broadcaster Video-On-Demand) experiencing a staggering increase in ad revenue of 67.8% in 2021, as recorded by industry body Think TV. While this still represents a relatively small (approximately $363m) slice of the $4.2bn pie that was total TV revenue in 2021, it’s impossible to ignore these impressive growth figures.

This boom in BVOD is largely driven by Millenials and Gen X, and all of the traditional networks are stepping up and launching their own streaming platforms including SBSOnDemand, 7Plus, 9Now and 10Play as well as BVOD which is a curated mix of catch-up TV, live TV and exclusive content that is available through their respective apps.

SVOD services contribute to the plethora of global and local streaming platforms available to consumers, further fragmenting TV viewing audiences. With the entrance of new, sports-specific platforms such as Kayo, Stan Sport (ad-free) and more traditional players such as Foxtel Now and Optus Sport, advertisers are able to reach audiences in a way they haven’t been able to before.

So what does that mean for TV as we know it?

Let’s be clear here – linear TV will undoubtedly continue to deliver strong opportunities and potential results, and any talk about TV (or the formerly revered 30” TV ad) having had its day is wildly misguided. But – and it’s a big but – TV needs to be approached in a new way in the future.

To get the most bang for your buck you need to be able and willing to think literally outside the box going forward because more and more people are going beyond the traditional living room flatscreen for their entertainment.

Like it or not, the way that younger people in particular are consuming content has changed, and if you
want to land your message to the right audience in the right way, you will need to rethink the way you position your brand.

You will also need to reassess what exactly you know about your audience. Transformations in the digital world and the shift away from third-party cookies mean that networks are having to turn to multiple online and offline sources to glean data, giving digital platforms a distinct advantage that might ultimately be more valuable than VOZ.

So where to now? Every brand needs its own unique approach that is carefully designed to respond to your specific needs and target audience, and our team here at Awaken is ready to support you in this. We closely track industry changes so we can help you formulate a strategy that perfectly aligns with your goals and makes the absolute most of your budget.

We still believe in the power of TV but we’re also passionate about the rise of BVOD and SVOD are skilled at developing integrated campaigns that make the best of all possible worlds.

Get in touch with us to find out more.