Seven is reducing the amount of advertising it runs across its broadcast and digital channels, a move that comes as ad demand weakens across the industry.
Both advertising content and the length of ad breaks will be cut from June, coinciding with the launch of reality show Big Brother, expanding to drama and movie programming.
The change means advertising across the network will join the reduced ad load already implemented during live sports, news and other public affairs programming.
The network says the new ad load comes after several years of research that shows the fewer ads a viewer is exposed to, the higher brand recall.
“As viewing habits evolve and choice increases, we believe there is no better time than now to enhance the free-to-air television experience for viewers and advertisers across broadcast and BVOD,” says Seven West Media chief revenue officer Kurt Burnette.
“Research has proven reduced ad loads can deliver more than 25% increased brand recall. We’re acting on that powerful insight after months of planning and analysis.
"The result - EAVE (Enhanced Advertiser and Viewer Experience) is a long-term strategic initiative designed to deepen the way brands and consumers connect with Seven’s content and audience across platforms.”
Burnette says Seven will continually evaluate the impact of the reduced ad load for clients.
The shift to lower ad levels comes as the network, along with the rest of the TV industry, is experiencing falls in its advertising business as a result of the coronavirus pandemic which has reduced brands’ marketing spend.
According to reports in April, ThinkTV data showed that revenue for commercial free-to-air was down 8% in the first three months of the year, before the lockdown measures came into full effect, with Seven pulling $186.6 million in advertising over the three months.
Towards the end of March, Seven West Media withdrew its earning guidance over uncertainty in the market related to the pandemic, saying there had been a "material fall” in advertising market activity.
Seven says the change in ad load is about improving engagement from viewers, with network programming director Angus Ross saying the benefit is shown in areas tested, such as news.
“We’re very much looking forward to accelerating the enhanced experience across our existing and exciting new and fresh content line-up,” Ross says. “All helping build engagement and grow audience across all platforms.”
Peter Pynta, CEO of neuromarketing company Neuro-Insight which carried out research for Seven, says there’s “rock solid” evidence that break length and the number of ads in breaks significantly influence ad effectiveness.
“The shorter the breaks and the fewer impressions within a break, the better the payback for advertisers,” Pynta says. “We’d implore the market to take this ad/program ecosystem seriously….and ideally see them as working in harmony.”
Research by Neuro-Insights found that in a “decluttered” advertising environment, there’s a 34% uplift in brand impact for sponsors, with viewer engagement, emotional intensity and memoring encoding all up.
Earlier this year Seven introduced new initiatives for advertisers, such as the freezeframe screen popup, which allows advertisers to reach viewers on its broadcast on-demand platform 7Plus during ad breaks.
The network says it has further advertising initiatives rolling out soon.
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