The total free-to-air TV advertising market is expected to decline by more than 13% this year, with the sector hit hard by the pandemic’s squeeze on marketing budgets.
PwC, in its Australian Entertainment and Media Outlook report, forecasts that the sector will fall by 13.9% in 2020 to $2.93 billion, based on the midpoint forecast scenario. This is compared to a 4.6% decline in 2019 to $4.49 billion.
However, BVOD will remain a key growth driver with a 27.5% increase forecasted in 2020 based on the midpoint forecast scenario.
The overall decline in ad spend comes despite an increase in TV audience, with 51% of FTA experiencing an 11% increase in audience consumption in the week of March 16, when the government first announced social gathering restrictions.
“The accessibility and trust placed in broadcast TV brands meant that despite these challenges, viewership remained strong throughout COVID-19, particularly for news and local reality programs,” the report says.
“Sport, once back on air, has also engaged audiences, despite the many changes to both the schedules and format. Advertising revenue was not able to match this viewing trend as a result of advertisers going off air and shrinking marketing budgets overall to combat COVID-19 business impacts.”
Linear TV advertising revenue is forecasted to decrease 2.48% compound annual growth rate (CAGR) to 2024 based on the midpoint forecast scenario. BVOD will offset this decline, and is forecast to increase 24.87% CAGR to 2024, resulting in a total broadcast TV market CAGR of -0.41% based on the midpoint forecast scenario.
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 email@example.com