Internet TV Advertising – Taking Centre Stage

Internet TV Advertising

According to Nielsen’s online consumer landscape report, 24% of Australians are viewing some of their favourite TV programs on demand or via catch up TV. As a result, Mediacom estimates TV streamed from the internet now accounts for up to 12 per cent of total TV viewing (March 2012). There is thus little wonder why brands are flocking to take up internet TV advertising for Australia’s most popular TV programs.

So popular is internet TV advertising becoming; the cost to advertise is starting to outstrip the cost for placement during the traditional scheduled format. In fact last week it was reported that online TV advertising for the Voice reached a CPM of $75 whilst advertising during the scheduled TV slots for the hit format was $37 CPM.

But whilst online TV advertising is commanding a premium – it is still early days……

It’s big and it’s going to get bigger.

According to Comscore in late 2011, internet TV had already reached upwards of 12 million viewers per month in Australia. But where are the eyeballs going? Vincent Dempsey, Head of Digital Media at Ten, recently stated catch-up TV viewing on the 10 network (across mobile and TV) attracts 1.5 – 2 million unique visitors a month. Whilst ABCs’ iView recorded an average of 2.9 million visits per month (during 2011), which was up 48 per cent on the previous year.

Internet TV Advertising

However these already impressive audience figures are set to explode over the next 12 months with researcher Nielsen forecasting that by next year, six out of 10 Australians will get TV from the internet. This growth is set to have an on-flow effect to internet TV advertising revenue over the next 5 years with Frost and Sullivan predicting the Australian industry will grow from $54m in 2011 to $311m in 2016.

To integrate or not to integrate?

With fewer placements and the allure of direct response – internet TV advertising is obviously able to command a premium – but the real question is should internet TV advertising be used in isolation?

TV audience fragmentation is one of the key issues traditional scheduled TV advertisers are now trying to grapple with. Add to this the distraction of second screen usage and it’s no wonder that TV advertising is losing some of its appeal – however it is those who look to integrate that will gain the greatest benefit. As much of these audiences migrate between traditional scheduled TV and online viewing to accommodate their lifestyle and own timetable – integration of activities enables brands to maximise frequency. Catch Up TV is also one of the key factors fuelling growth in TV viewing – as opposed to decimating traditional viewing, thus through integration it provides brands with the opportunity tap into a larger audience overall.

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