It’s no secret that video consumption habits are changing. Linear TV impacts are in decline, whilst video streaming and on-demand viewing are increasing. It is, therefore, more important than ever before that we understand the effects that Broadcaster VOD has on reach and frequency for audiences and, given the current economic climate, we must understand the effect that video on demand has on clients’ businesses. In November, Thinkbox, alongside Gain Theory and PwC presented their findings from ‘BVOD Almighty: Reach and Return’, lifting the lid on how linear and On-Demand video can work together.
The research, using C-Flight reporting across multiple audiences (reporting not yet available to agencies), found that BVOD ads can boost linear TV reach by an average of 4% for adults, 6% for ABC1 adults, and 8% for 16-34 adults. The study went one step further, detailing how adding BVOD to an AV plan can help to deliver an astounding 10% uplift in ROI, in comparison to campaigns that rely on Linear TV alone. This, of course, varies by sector and spend level, with online businesses naturally performing well when running online video campaigns.
On top of this, the study showed that investment into TV and BVOD is a safe bet for clients looking to deliver a strong ROI. Video in general has a more predictable ROI when compared to other media, meaning video spend has a lower risk for advertisers compared to the likes of social media, which has a much higher margin of error. Additionally, for clients looking for quicker payback, BVOD performed best for short-term ROI.
The success of BVOD means we are now seeing an influx of targeting opportunities and data usage from the Broadcasters. ITV now has access to Boots’ sales data, opening up targeting opportunities for health and beauty brands, bought via Planet V. Both ITV and Channel 4 are making gains in the media retail world, negotiating deals with Dunhumby and Nectar respectively, allowing advertisers to target audiences based on shopping habits, and attributing sales back to those exposed to BVOD advertising. This highlights the shift that AV is taking in becoming more addressable and data-led.
Lastly, we place our focus on Netflix. There was a considerable amount of excitement around the biggest SVOD publisher allowing advertisers on its platform for the first time. As launch partners with Netflix, we had the opportunity to see how it has performed and note down any learnings for future plans. Netflix will undoubtedly be a big player in the AV landscape for years to come, and whilst the launch of their ad-supported offering has resulted in limited subscribers, there is a clear plan to mend this with more subscribers forecasted to join in the coming months. This is in line with the password-sharing purge that is expected to come into effect in January 2023.