The total TV ad revenue experienced strong growth in the six months and the 12 months to June 30, 2018.
According to the figures released by the industry body ThinkTV, the total TV ad revenue market (excluding SBS) increased by 1.8% to $1.98 billion for the six months to June 30, 2018. This brought the total financial year revenue for the sector to $4.15 billion.
The result was driven by a particularly strong performance in the free-to-air sector, which was up 3.81% in the June half, to report revenues of $1.36 billion and $2.86 billion, up 2.53 % for the full financial year.
Mass consumer uptake of the Broadcaster Video on Demand (BVOD) platforms 7Plus, 9Now, tenplay and Foxtel Now has translated into record digital growth, with BVOD revenues up 40.5% to $50 million for the six months to June 30, 2018.
The success highlights consumers’ growing demand for streaming TV content, which lifted BVOD revenues for the financial year to $92.8 million, up 32.38% year-on-year.
ThinkTV CEO Kim Portrate said: “The Total TV ad market remains strong with just under $2 billion invested in the past six months and more than $4 billion for the full financial year. It’s important to note that we have seen strong revenue growth across the premium BVOD market and the wider linear television market.
“The rise in BVOD revenues demonstrates the explosive growth that has been driven by the TV industry’s commitment to satisfying its audiences’ hunger for professionally produced content at the time, place and on the device of their choice. Given that demand and the industry’s recent announcements regarding advanced audience targeting, BVOD will remain an area of rapid growth.
“Advertisers and agencies are increasingly recognising that the premium content that powers multiplatform TV provides gives their brands and business a powerful advantage in today’s increasingly competitive environment. Moreover, nothing beats TV for reach, scale or return on investment – and all in a brand-safe environment – so these results are very pleasing.”
Over the full financial year, the Total TV ad revenue market was $4.15 billion, an increase of 0.5% compared with the previous corresponding period.
The Total TV metric includes metropolitan and regional revenues from commercial broadcasters, including ThinkTV members Seven, Nine, Ten and Multi Channel Network/Foxtel.