The total TV advertising market fell 10% to $3.4 billion in the year to December, according to industry body ThinkTV.
The market includes metropolitan free-to-air, regional free-to-air and broadcaster video on demand (BVOD) and excludes SBS.
In the December half, TV advertising revenue was $1.8 billion, down 9% when compared to the same period six months in 2022.
ThinkTV's numbers from a year ago showed the market rising to 1.2% to $4.1 billion in the year to December 2022, but numbers released by the industry body in August 2023 showed the market down 7.9% compared to the same period ending 30 June 2022.
ThinkTV CEO Kim Portrate says the financial result for the past year reflects the perfect storm of economic headwinds faced by many Australian media companies.
"Inflationary pressures, supply chain disruptions, 13 rate rises, and record-low consumer confidence have collectively created a complex landscape for advertisers," she says.
"Despite challenging market conditions, Australia’s broadcasters continue to deliver compelling content that engages large audiences, distributed in an increasingly digital way as the market rapidly evolves.”
|
Performance by sector |
||||
|
|
6 months to Dec 23 |
% change YOY |
12 months to Dec 23 |
% change YOY |
|
Commercial FTA |
$1,779,772,204 |
-9.0% |
$3,389,974,475 |
-10.4% |
|
Metro FTA |
$1,226,062,541 |
-12.9% |
$2,346,488,256 |
-14.1% |
|
Regional FTA |
$324,729,520 |
-5.8% |
$626,389,805 |
-6.8% |
|
BVOD |
$228,980,143 |
12.5% |
$417,096,414 |
9.9% |
Advertising investment in BVOD platforms 7plus, 9Now and 10 Play accelerated, with BVOD revenue up 12% to $229 million for the six months to 30 December 2023. BVOD revenue for the total financial year was $417 million, up 10% year-on-year.
Portrate says the growth in BVOD revenue is a testament to the adaptability and appeal of the Total TV platform.
"In a time of shifting consumer behaviours, BVOD continues its upward trajectory reaffirming the broadcasters’ commitment to delivering entertainment whenever, and wherever Australians wish to consume it," she says.
"This is supported by brand-safe, premium advertising solutions, wholistically measured through the transparent and comprehensive VOZ system.”
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