Broadcast video on demand (BVOD) ad revenue has rocketed by 43%, according to ThinkTV's latest advertising revenue report.
The TV lobby group revealed the record growth for the six months to December 31 2018, with CEO Kim Portrate calling the numbers “remarkable”.
The data is provided to ThinkTV by major TV networks Seven, Ten and Nine and pay TV provider Foxtel.
BVOD advertising revenues, which include advertising revenues from online catch-up services and the live online streaming of TV over the internet, grew by 42.95%.
The growth can be attributed to the rise of the major networks' owned BVOD platforms including Foxtel Now, 9Now, 7plus and 10 Play, which were subject to significant financial boosts throughout 2018.
Late last year, Australia's TV network sales bosses spoke on their expectations for BVOD spend in 2019, as they urged brands to consider the channel as a separate spend from traditional linear broadcast.
Nine made waves in January when it released a raft of new ad products and enhancements to 9Now, adding dynamic ad insertion into live streams.
At its upfronts last year, Seven doubled down on its BVOD data privacy strategy, while also announcing it would invest further into growing its content library.
Ten's new sales team, which began operating in market earlier this year, announced that it would tie-in its new data proposition, Ten Interactive, into creating further cross-platform commercial opportunities, with BVOD playing a crucial role.
Smaller player SBS also ramped up its BVOD strategy last year by placing a greater emphasis on SBS On Demand, which currently has 5.7 million signed-in users, with the network announcing its intent to build a stronger addressable offering for advertisers.
When AdNews approached Australia's top TV executives for their thoughts on the future of the industry in 2019, a common theme was the growth of the BVOD offering.
Total TV in decline
ThinkTV's report also showed the total TV market, including metropolitan free-to-air, regional free-to-air and subscription TV, record combined revenues of $2.08 billion, which was 4.56% lower than comparable revenues for the same six months a year earlier.
For the six months to December 31 2018, the advertising market for metropolitan free-to-air and subscription-television fell by 3.97% to $1.70 billion versus the same period a year earlier.
Portrate said the performance of Total TV revenues reflected the weaker overall advertising market versus the same period a year earlier due to cyclical factors such as the same-sex marriage plebiscite in 2017, the absence of the Ashes Test Series in 2018, and the Hayne Royal Commission throughout 2018.
“The Total TV figures represent a respectable performance in challenging market conditions for all media, particularly given the tougher comparisons in the last half due the return to growth of the free-to-air metropolitan market in the six months to December 2017,” Portrate said.
“TV is proven as the most effective advertising platform and is committed to becoming more effective by giving advertisers new ways to connect with customers.
"The remarkable growth in BVOD revenue – which doubled in pace versus the same period last year – and new addressable TV advertising products are just two examples of this commitment.”
Breaking down the networks, during full 2018 year, Seven pipped Nine with a 39.10% revenue share compared to 38.20%, with Ten trailing with 22.70%.
Looking at the numbers, the narrow victory by Seven also came with a significant bill, as the network aired the Australian Open, Winter Olympics, Commonwealth Games and started its new deal with Cricket Australia.
Even with the four major events, Nine and Ten remained slightly down on the full 2017 year, with Nine and Ten holding a 39.30% and 23.80 share respectively.
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