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SBS to upgrade digital advertising offering as cross platform deals take a hit

With revenues flat after the global financial crisis, SBS is set to introduce technology that will give advertisers more flexibility in how they buy ads across SBS2, its digital TV channel.

SBS director of advertising sales, Mark Fairhurst, said that he expected splitting market buys for advertisers by geography – rather than a single national buy – would boost ad revenue by 10%. A date for the introduction of the new system has yet to be set.

Fairhurst also noted that the appetite for cross-platform deals had taken a hit, as time-pressured buyers looked for quicker, easier ways to buy media. This, he said, has played into the hands of the commercial broadcasters.

Fragmentation and a rise in inventory – which has tripled on SBS since the launch of SBS2 – has put advertising rates under pressure, he added. “We’re not dropping our pants. But we’re having to do a lot more trading on price.”

The channel is taking a vertical approach to programming to take on the rise of digital channels, which have hit the in audience share of terrestrial channel SBS1. “Our goal is  not to go head to head on core programmes. We want to build quality volume in key verticals – film, food, football and factual.”

The market sentiment Fairhurst called “nervous”, with retail and automotive – a key category for SBS – adopting a cautious approach. “Advertisers are tapping the brakes to assess the situation,” he said. “The original forecast of 6-7% [for the TV market] is likely to come down.”

SBS is also revamping its website, a move that the company hopes will fuel 15-20% online revenue growth this year. The focus will be on improving the user experience of online video, said Guy Burbidge, national online sales manager.

Meanwhile, SBS will be hoping the launch of provocative documentary Go Back To Where You Came From proves to be a ratings winner when it debuts on June 19.

The show, which aims to challenge preconceived notions about refugees and asylum seekers, is similarly themed to Immigration Nation, a documentary that explored the effects of early white settlers in Australia. The promo for the show, created by Us Sydney, was awarded ad of the month in February.

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