top of page
Search

Navigating the New Frontier: The Rise of Connected TV Advertising in Australia

  • Writer: matt
    matt
  • Dec 4, 2023
  • 4 min read

ree

In the ever-evolving landscape of digital advertising, Connected TV (CTV) in Australia represents a new and exciting frontier. As consumers increasingly shift towards streaming services and internet-enabled television, advertisers are presented with a unique opportunity to reach audiences in a more targeted and interactive way. This post explores the current state of CTV advertising in Australia, its advantages, challenges, and future prospects.


The Growth of Connected TV in Australia


Connected TV (CTV) refers to traditional television sets that are connected to the internet, enabling viewers to access a vast array of content, including streaming services, catch-up TV, and over-the-top (OTT) apps. Australia is witnessing a rapid increase in the adoption of Connected TV with the proliferation of streaming platforms like Netflix, Stan, Amazon Prime, Paramount, Disney+, Binge, BritBox and quite a few more. These services which promote their content and drive demand, are often accessed via Smart TVs or CTV devices such as Apple TV, Chromecast, Roku, and Amazon Fire TV, with over half of Australian households now owning at least one. The number of Australian households with a CTV device continues to grow rapidly and is expected to reach 83.2% by 2028.


CTV access is driving a shift in media consumption habits: Australians are increasingly consuming video content on connected TVs, rather than traditional TVs. By the end of 2023, it is estimated that over 50% of all video viewing in Australia will take place on CTV devices.

Accordingly, CTV advertising is becoming an increasingly important part of the Australian media landscape. Advertisers are recognizing the power of CTV to reach and engage with audiences on a large scale and are investing in CTV advertising campaigns. This shift is reshaping how advertisers approach media buying, moving beyond traditional TV spots to more dynamic and data-driven strategies. CTV advertising platforms offer advertisers the ability to target their ads to specific audiences based on demographics, interests, and viewing behavior.


Evidence of the continued growth was shown in the most recent IAB Online Advertising Expenditure Report; connected TV continued to yield the greatest share of content publisher’s video inventory investment, increasing from 45% in the June quarter to 54% in the September quarter buoyed in part by Women’s Football World Cup activity.

According to Statista, the current advertising spend on connected TV (CTV) in Australia is estimated to be $461 million in 2023. This figure is expected to grow at an annual compound growth rate (CAGR) of 5.11% from 2023 to 2028, resulting in a projected market volume of $593 million by 2028.


Advertisers continue to invest in CTV in many cases due to the following advantages:


· Targeted Advertising: Unlike traditional television, CTV allows for more precise targeting based on viewer demographics, interests, and viewing habits.


· Measurable Outcomes: CTV provides detailed analytics, enabling advertisers to measure the effectiveness of their campaigns in real-time, track performance and measure ROI.


· Engagement and Interactivity: The interactive nature of CTV ads leads to higher engagement rates.


· CTV ads can be more creative and engaging than traditional TV ads, as they can take advantage of the larger screen and interactive features. For example Advertisers can incorporate interactive elements like QR codes or clickable ads, enhancing viewer involvement.


· High-Quality Environment: Ads on CTV are generally viewed on larger screens with higher engagement, making them more impactful.


· Reaching a large and engaged audience: CTV viewers are typically more engaged than t traditional TV viewers, with higher levels of attention and recall.


Key Considerations for CTV Advertising in Australia


When planning a CTV advertising campaign in Australia, it is important to consider the following factors:

  • Target audience: Who are you trying to reach with your ads?

  • Campaign goals: What do you want to achieve with your ads?

  • Budget: How much are you willing to spend on your campaign?

  • Ad formats: What type of ads do you want to use?

  • Measurement: How will you measure the success of your campaign?


Challenges and Considerations


Despite its advantages, CTV advertising in Australia faces its own set of challenges:


1. Fragmentation: The CTV market is fragmented with multiple platforms and services, making it challenging for advertisers to manage and optimize campaigns across different services.


2. Privacy and Regulation: With increasing concerns over data privacy, advertisers must navigate the complexities of compliance with regulations like the Australian Privacy Principles.


3. Creative Development: The need for high-quality, platform-specific creative can be resource-intensive.


How to Advertise on CTV in Australia


There are a number of ways to advertise on CTV in Australia, including:

  • Direct partnerships with CTV publishers: Businesses can partner directly with CTV publishers, such as broadcasters and streaming services, to place their ads.


  • Programmatic advertising: Programmatic advertising allows businesses to buy and sell CTV ad inventory in real time through automated platforms.


  • Over-the-top (OTT) advertising: Businesses can advertise on OTT platforms, such as Stan, Netflix, and Disney+, to reach their target audience.


The Future of Connected TV Advertising in Australia


Connected TV advertising in Australia is more than just a trend; it's a transformative shift in the digital advertising landscape. As technology evolves and more data becomes available, advertisers will have even greater opportunities for precision targeting and personalized ad experiences. For brands looking to stay ahead, embracing CTV advertising is not just an option but a necessity to remain relevant and engaging in the digital age.

Additional Resources

 
 
 

Comments

Epiphany Partners

2024 All Rights Reserved 

bottom of page