The revival of the overall television advertising market is expected to continue through 2022, PwC says in its annual Entertainment and Media Outlook.
The consultancy forecasts growth of 7.9% this year and 3.7% a year through to the end of 2026.
Growth will be driven by a shift to digital content consumption.
PwC: "The FTA sector is evolving and has seen a strong revenue resurgence in 2021, and 2022 forecasts suggesting a return to levels not seen since 2017.
"Underpinning this evolution is the rapid growth of BVOD across all major Australian FTA networks, who continue to invest significant amounts in improving the user experience of digital programming.
"Following the pandemic, the FTA TV industry is experiencing a fluctuation of returning spend across categories."
TV advertising from the travel fell 55.2% and automotive 19.5% in 2020, according to Standard Media Index (SMI) data.
Since then, the total market has seen a resurgence to $3.7 billion in 2021, a growth of 12.6% with travel, pharmaceuticals and live entertainment surging again.
PwC says traditional linear television continues to go through a time of transformation, driven by the changing behaviours of audiences.
Linear television is forecasted to see a 3% a year decline through 2026, reaching A$2.9 billion, based on a midpoint scenario.
Underpinning this total TV transition is the development of industry audience measurement capabilities, with the launch of OzTAMs Virtual Australia (VOZ) paving the way for linear and digital platform audience reporting.
PwC: “The ability for buyers and publishers to more fully understand cross-platform TV viewership is a welcome development which will likely support advertiser investment into Australian broadcasters through the forecast period.”
BVOD is forecast to grow 34.2% a year through 2026, as audiences continue to consume Australian broadcaster programming in a transformed digital, customised experience.
However, PwC says a growing area of concern in the industry is that of “prominence”.
BVOD apps, now growing audiences for networks, compete with a broader set of apps either pre-loaded or available to download on connected TVs.
Broadcasters are increasingly required to negotiate with TV hardware providers to ensure their BVOD app’s visibility within TV operating systems.
PwC: “The greater competition in this space highlights the significance for BVOD providers to differentiate themselves by providing improved user experiences and content options for audiences to remain top of mind and drive usage.”
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