Mathew Schwartz via Unsplash
New streaming service HBO Max has impressed Australian media buyers with its proactive market launch, already distinguishing itself from competitors such as Netflix and Binge.
Max is being praised for its early and transparent engagement with agencies, a contrast to what buyers describe as more fragmented approaches from other platforms.
“It’s still early days but from the get go Max has the benefit of launching as an ad-supported streaming service from day one,” Enigma executive director Sally Lawrence told AdNews.
“Giving them a clear advantage over platforms like Netflix and Binge who had to retrofit their advertising models into an established and ad free user experience.”
Many media agency insiders call Netflix’s launch into advertising a “failure” as the streaming platform set its costs too high at around $100-$150 CPM wanting commitments of $300,000.
Since the launch, Netflix has adjusted its CPMs to be competitive with the market at around $55 with buyers expecting the cost to drop further, insiders said
However, when Paramount and Amazon launched into Australia they leveraged existing local advertising relationships to help stimulate its streaming launch uptake.
Max similarly leveraged Australia’s largest media company Nine as the exclusive sales partner. This local partnership has made it easy for media agencies to get involved with the streaming platform instantly.
Agencies say Max reps have promptly come into their offices to provide complete details on rates, content, audience, formats and launch opportunities.
AdNews revealed that Max’s launch packages were priced at the upper end of the market, but is comparable to its SVOD peers, with 2.2 million impressions at a $55 CPM ($121k media spend per package).
"Nine has taken a proactive approach, taking packages directly to market and engaging with independent agencies early," Lawrence said
“Which is a welcome change from what we have seen with other streaming platforms.
“Naturally, the launch packages are broad with no targeting, but the CPMs are competitive and signal a more inclusive and accessible entry into premium streaming inventory.”
More interestingly, with such a successful start, what will Max do from here?
“Max has the ability to build an ad integration into the platform in a more seamless and strategic way,” Lawrence said.
“One would hope that a partnership with Nine could unlock some unique opportunities for clients in the SVOD space.
“From what we know so far, the rates are competitive, and while targeting capabilities are still being developed, the early signs are promising.”
The Media Store performance director Annie Marendaz told AdNews there has not been a huge amount of appetite just yet from clients.
“But we're keen to see the subscription numbers and potentially throw it into our VOD mix,” Marendaz said.
“With well known, premium blockbuster TV shows and movies, Max will offer long-form content with engaged audiences [in contrast to other players in the Australian market].”
For Enigma clients there is definitely an appetite with a particular interest around Max and its relationship with Nine.
“As clients are keen to understand how and if we can capitalise on Nine’s data targeting capabilities through Max,” Lawrence said.
“From a consumption perspective, we increasingly see SVOD on the rise, so the addition of a new SVOD platform is a good thing for brands and agencies.
“The challenges around measurement will, however, still exist. This is something the industry is still trying to tackle, and brands need to be aware of this.
“To ensure appetite turns into investment, Max and Nine need to consider how they introduce targeting capabilities to make the entry point attainable for more brands and agencies.”
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.