Linear TV saturates the same viewers with the same ads: State of Viewership report
89% of advertising on linear television reached only half of Australian households during the first half of the year.
This is according to new Samba TV data, as compiled in its H1 2023 Australia State of Viewership Report.
The report showed that television viewers are firmly divided into two parties. The 50% that watches the most linear television (free-to-air TV, as opposed to on-demand) are consuming 89% of all commercials seen, while the bottom 50% in terms of viewership are exposed to just 11% of television advertisements.
“While that bottom 50% of Australian households were under reached or not reached at all, those heavy linear viewers who make up the upper half were bombarded by 70 TV ads daily, driving costly ad fatigue,” the report explains.
As the above graph shows, the total hours of linear TV watched throughout the first half of this year has dropped off, with average daily reach slightly down as a result.
Around half of Australian households, some 5.2 million, watch linear television each day. Subscription over-the-top services (media offered directly to viewers via the Internet) increased by 3% year-on-year, building on a 5% increase from 2021 to 2022.
“Advertisers relying on linear to reach audiences should look to BVOD and streaming to engage consumers that have shifted away,” the report recommends.
“For years, linear has been oversaturating the same viewers with hundreds of ads. Comprehensive, omniscreen measurement is essential to manage reach ad frequency across the new opportunities that over-the-top advertising presents.”
Even worse for the free-to-air networks is that the top ten retail advertisers decreased their spend during the first half of 2023.
Interestingly, while Amart Furniture and Bunnings had the most-reduced ad spend year-on-year, their smaller competitors seemed to take notice, with The Blinds Gallery, La-Z-boy, macpac, and Highgrove Bathrooms seeing the largest increase in advertising.
“With the first half of 2023 behind us, advertisers are seeing real-life rewards on streaming and broadcaster video-on-demand (BVOD), with better managed audience reach and frequency,” the report explains.
“The final months of 2022 ushered in Netflix ad tiers and consumer response is becoming clear: the ability to personalise subscriptions allows us to watch more of our favourite shows when we want, how we want.
“Advertisers are also tapping into free, ad-supported BVOD options to strike the right balance to reach every imaginable audience.”
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