TV advertising market falls back 22.1% in first half of 2020

Revenue from TV advertising for the first six months of 2020 was $1.49bn, a decrease of 22.1% year on year.

Think TV CEO Kim Portrate said COVID-19 had made 2020 more challenging than anyone could have predicted for the media.

Think TV thinks the 2021 financial year could be better 

“The past 12 months have been tough for the media sector, with COVID-19 making the last six months more challenging than any of us could have imagined. This is reflected in the latest SMI data, which suggests the total advertising market was down 14.7% for the financial year,” she said.

For the entire 2020 financial year, TV ad revenue was down 13.7% to $3.4bn. The figures include metropolitan free-to-air, subscription TV and broadcast video on demand (BVOD). The figures exclude SBS.

Looking at just the commercial free-to-air networks, revenue was $1.01bn for the six months to June 2020, down 21.9%, and $2.33bn for the year, down 14.1%.

BVOD revenue, however, was up 23.4% for the six months to 30 June, 2020, to $83m, and up 32.7% for the financial year to $170m.

Portrate also flagged that demand for TV advertising seemed to be increasing in the new financial year, and noted the rise in audiences.

“The one shining light through this period of disruption has been the rapid audience growth TV, in all its forms, has experienced. Australians rely on TV to stay informed, to share stories and connect with community. It’s where we turn when we need news and information, while entertainment, reality and drama programs are there when we need an escape,” she said.

“TV has played a critical role in communicating brand messages at scale, particularly during the last quarter. This is the reason so many marketers make TV the first medium on the plan and the last one off in tough economic times.”

Television is not the only sector to be hit by the downturn, with commercial radio revenues for the financial year falling 20.39%. For the June quarter alone, radio revenues were down 46.62%.


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