The next step for TV’s evolution

Sasko Bosilkovski
By Sasko Bosilkovski | 2 May 2023
 

Linear as defined in the Oxford Dictionary is to be "arranged in or extending along a straight or nearly straight line".

For Linear TV over recent years, this straight line has done anything but remain straight. It has ebbed and flowed like couple goals on an episode of MAFs. At The Future of TV Advertising Sydney conference this year we heard from publishers, clients and tech companies to suggest this trend will continue but it's how we prepare for it that will make us better for it in the long run.

I mean, think about it. More streaming is to the living room TV. FAST expands the linear experience, only in the streaming space. TV networks have never faced more competition for advertising dollars than before as subscription services like Binge, Netflix, Disney+ are venturing from an ad-free TV model to an ad funded model.

It’s easy to see how this could be the end of an era.

The conclusion at The Future of TV Advertising Sydney was that Linear TV was only changing from the straight line and has a bright future ahead of it. It’s the winner of attention as it drags up other channels and is constantly evolving. And to innovative marketers, this shift opens a whole new world of advertising opportunities.

Australia's households will continue to be wired up for connected viewing. The strength of connected TV rests in its ability to drive high rates of attention while combining high-quality data segments that enable marketers to target relevant and authentic audiences. Thus, campaigns on broadcast and BVOD across all screens must play a significant role for advertisers.

We all know that audiences have evolved their viewing habits and never really went away but have taken advantage of the wider (and more fascinating) TV landscape (sometimes immersed in boxsets) becoming Total TV. Reuniting such audiences is now simpler, but to do so requires brilliant implementation of the Total TV skillset across planning, execution and measurement.

TV still reaches millions of Australians every day, delivers high velocity reach and remains the strongest platform to build brands as highlighted by Natalie Harvey Network Seven National Sales Director. The future of TV which is “Total TV” will see advertising become more accessible and simpler to assess across screens, influenced by the BVOD's rising popularity and the ability to reach an addressable audience.

The floodgates to the new, increasingly digitised world of TV are opening up, making it easier for small- and medium-sized marketers to break into the market. Brands who have found the reach of linear TV to be too broad have also found the focused approach provided by addressable TV to be appealing.

The popularity of broadcast video on demand (BVOD) has made it easier to entice back audiences who can't keep up with scheduled content transmitted via linear TV. Broadcasters have more opportunity to interact with viewers when they give them the choice to watch anything on demand or whenever it's convenient for them. 63% are more likely to watch Ten Play than the average which was an interesting fact by Ampere.

But, FAST (Free Ad supported Streaming TV) shouldn't be overlooked for its contribution to the shift from free TV to streaming (a shift that is already fully accomplished in pay TV), linear by nature, it moves the broadcast experience into the streaming space. 61% (3 out of 5) of Australians are happy to watch ads if the content is free and 64% of Australians are concerned about the costs increase on multiple platforms as highlighted by Gavin Bridge Samsung Ads Australia.

The next step for TV’s evolution lays within the field of measurement. The introduction of VOZ, the new TV reporting standard from Australian audience measurement research firm OzTAM, will allow for better cross-screen measurement in Australia which was announced to be in market by 1st May 2023.

To conclude “A converged approach delivers a more balanced reach across sub-segments of the target audience” as mentioned by Natalie Harvey, the new world of Total TV, which is increasingly becoming digitised. Total TV generates the greatest brand impact via both solus and interactive media effects.

Sasko Bosilkovski, Investment Director, Carat Australia

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