Agencies should work with advertisers to optimise ad buys in broadcaster video-on-demand (BVOD) ecosystem.
As TV audiences migrate to digital formats, broadcasters must future-proof ad products. Across platforms and by 2027, UK broadcasters will account for 61% (now 72%) of overall video consumption, as per an Enders Analysis report. Further, audience contraction leads to diminished ad revenues that are fed back to producing content.
Aligning linear TV and BVOD by a two-tier system of separating premium and standard inventory is recommended. Where premium inventory can be sold contextually, standard could go for addressable ads.
Self-serve, tech-driven ad products that allow advertisers flexibility and can apply to linear TV and BVOD both is one solution to explore. To avoid reduction of spends towards linear TV, broadcasters must ensure they remain profitable enough for agencies buying ads for advertisers.
[6 minute read]