The TV landscape in Australia is undergoing a transformation with traditional television no longer the solitary monarch of entertainment. The linear TV advertising market, which includes metropolitan free-to-air channels, recorded a 15.3% year-on-year decline, while broadcaster video on demand (BVOD) grew by 6.1% year-on-year.
As BVOD and Subscription Video on demand (SVOD) lead today’s digital consumption habits, advertising video on demand (AVOD) services are about to burst onto the scene, altering not only what we watch, but also how marketers reach their audiences. They also offer new revenue streams for media owners.
As one of the most advanced digital video markets, these dynamic shifts to the Australian digital ecosystem will herald a new era of efficient and effective advertising—a future that programmatic advertising can help to deliver.
Shifting from ad-free to ad-supported TV
AVOD represents a lucrative monetisation avenue by providing a digital platform to reach consumers effectively. This shift from traditional broadcast advertising to digital AVOD platforms will reshape how marketers allocate their budgets and engage with audiences. It’s expected to create fierce competition among brands to secure prime ad spots, potentially resulting in more creative and targeted advertising campaigns.
AVOD will disrupt Australia’s digital video landscape by expanding access to premium content. While SVOD services require a subscription fee, AVOD platforms offer a vast library of content for free, supported by advertisements. This accessibility will attract a more extensive and diverse audience, including those who might have been hesitant to subscribe to multiple paid streaming services.
Ad-supported TV in Australia is not just about embracing a new revenue model; it’s about adapting to a changing media landscape. Programmatic advertising is at the forefront of this transformation, offering a way for marketers to harness the potential of ad-supported platforms while delivering more relevant and engaging content to viewers.
Programmatic advertising will be a driving force throughout this evolution, reshaping the industry and ushering in a new era of targeted, data-driven advertising that benefits marketers and provides a better viewer experience.
Bringing transparency and measurement to the forefront of programmatic investment
Programmatic pipes enable data-driven, automated ad buying and selling. They offer marketers a means to precisely reach their desired audiences, enhancing efficiency by eliminating the guesswork that often accompanies traditional ad placements.
This not only maximises the impact of advertising efforts, but also minimises wastage, ensuring that ad dollars are allocated strategically. A significant advantage of programmatic pipes is their ability to introduce transparency and measurement into the advertising ecosystem.
In the current landscape, TV measurement often relies on outdated methods like panel-based viewership data or limited set-top box data. These approaches provide only a partial view of viewer behaviour and fail to capture the full spectrum of engagement. Programmatic, on the other hand, uses real-time data to offer marketers insights into key performance metrics, such as impressions, viewability, and engagement rates. This real-time transparency allows marketers to optimise their campaigns on the fly, eliminating inefficiencies like duplicative requests and maximising results.
For example, a car manufacturer advertising a new model – through programmatic, the brand can gauge the number of impressions, and track the number of consumers who interacted with the ad, visited the manufacturer’s website, or even scheduled a test drive. This level of granular measurement not only enhances accountability, but informs future strategies, creating a virtuous cycle of improvement.
The days of relying on outdated measurement methods are numbered; it’s time to usher in a new era of advertising that’s in tune with consumer behaviour, and empowered by real-time insights.
Taking action
For programmatic capabilities to showcase their true power, the IAB Tech Lab’s OpenRTB 2.6 protocol must reach a higher level of adoption in the marketplace. Index worked with the IAB Tech Lab to develop this latest version, which includes several notable updates to account for the intricacies of TV.
Version 2.6 introduces new features that bring features such as pod bidding to CTV. These new features facilitate the monetisation and construction of ad pods for media owners and enable the targeting and measurement capabilities that buyers need. This is a critical and exciting update because it makes it easier to replicate the TV ad break experience in CTV, which requires maintaining competitive separation and avoiding duplication within the same break.
Pod bidding allows buyers to bid on a specific ad slot within a pod when buying programmatically. Traditionally, different ad breaks within a show, or even the different positions within an ad break, command different prices based on how engaged the viewer may be. This hadn’t been possible to replicate in CTV.
Now, media owners can indicate the position of a given ad pod within a show or movie, and the position of an ad slot within a pod, so buyers can target their bid responses.
The specification brings significant advantages to the Australian video advertising industry by fostering a more efficient and transparent ecosystem. Its enhanced features enable marketers and media owners to achieve greater precision in reaching their audiences, resulting in improved engagement and higher ROI.
“If there’s one piece of advice to share, it’s to lean in and talk to your partners about furthering efforts around transparency in this channel.“
Ruth Mortimer, global president, Advertising Week
Additionally, OpenRTB 2.6’s support for native video formats enhances the consumer experience by seamlessly integrating advertisements into the content, reducing disruption and increasing consumer engagement. By facilitating smoother transactions, minimising fraud risks, and providing comprehensive targeting, OpenRTB 2.6 plays a pivotal role in advancing the Australian video advertising landscape.
