TV advertising revenue drops 5.9% amid ‘challenging market conditions’

Total TV advertising revenue dropped 5.9% in the first half of FY2020, compared to the same period the year before, according to new reporting from industry body Think TV.

The total TV market – which includes metropolitan free-to-air, regional free-to-air, subscription TV and broadcaster video on demand (BVOD) – recorded combined revenue of $1.95bn for the period.

“BVOD continues to buck general market performance trends”: Think TV CEO Kim Portrate

Think TV CEO Kim Portrate said the results reflect the wider economic climate in Australia.

“Changes in the total TV advertising market, the most effective medium for driving business growth, reflect the state of the Australian economy and the impact of weaker consumer and business confidence,” said Portrate.

Despite the drop in overall revenue, BVOD showed significant strength, rising 42.8% for the six months to December 31, 2019.

“The performance of BVOD continues to buck general market performance trends retaining the title of Australia’s fastest-growing advertising medium which demonstrates a growing list of advertisers who recognise the value and effectiveness multi-platform TV provides. This is an achievement all the more noteworthy given the challenging economic conditions the wider advertising landscape is currently grappling with,” said Portrate.

For the 12 months to December 2019, the total TV market recorded $3.86bn in advertising revenue, down 4.8% compared to the 12 months to December 2018. For this period, BVOD saw an increase of 38.9%.


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