Australia's newest streaming platform Max has priced its advertising packages at the upper end of the market, but is comparable to its SVOD peers, insiders tell AdNews.
Media agencies received contact on advertising packages last week, with launch packages offering 2.2 million impressions at a $55 CPM ($121k media spend per package).
CPM is a metric used to measure the cost of 1,000 impressions (views) of an advertisement.
Max campaigns are expected to run for 4-8 weeks, depending on audience adoption. Ads will be limited to standard pre-roll and mid-roll formats.
Ads will be frequency capped at 1x per stream, with a maximum ad load of 5 minutes per hour.
Foxtel subscribers will have free access to Max from launch, with an anticipated 400-500k unique users initially. Launch targeting is focused on audiences aged 18+.
Max officially launches in Australia on Monday, March 31, seeing new content arrive on Max in Australia every week, with major titles released at the same time as the U.S.
Media company Nine is the exclusive sales partner for advertising on Warner Bros. Discovery's (WBD) streaming service Max in Australia.
Max is well-matched to its competitors
Max is up against a competitive ecosystem within Australia's entertainment options, the convoluted space has caused a dramatic decrease of advertising prices.
This week Max launched its first advertising campaign, All Killer, No Filler, via Special which tackled Australia's oversaturated streaming market, highlighting the challenges viewers face in sifting through content.
AdNews understands on average SVOD CPM is around $45.
But often the quoted price doesn't match the final cost, as the price can change depending on how broad or specific an advertising buy is.
Ben Willee said SVOD holds a slight premium over BVOD.
"The question remains if SVOD can holds its premium due to oversupply of video inventory which drives down costs," Willee said.
Amazon's Prime went to market with an expected audience of four million with a CMP sitting around the $50 mark.
Netflix sits at $60 CPM, but at launched started at $100-$150.
Paramount+ sits at $50 CPM.
Binge at $40 CPM.
Kayo at $30-40 CPM.
YouTube at $15-20 CPM.
Seven and Nine sit at $25-30 CPM.
Ten and SBS have always been slightly more expensive at $35-50 because there is less supply and demand.
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