Social, after conquering reach, chases premium engagement
Media sales executives gathered at a roundtable late last year to launch Advertise or Die, a campiagn created after a tough year for the advertising market. With Ten, Seven, Nine and Foxtel all onboard, they argued they deserved a bigger share of brands’ media budgets because, while digital platforms, such as Facebook and Google, reach more Australians, the premium content of traditional media drives quality engagement.
Consumers are expected to spend 84 minutes a day watching online videos this year, up 25% from 67 minutes in 2018, according to PwC. Advertisers are following, with online video advertising predicted to grow by 22.4% to $3.8 billion in Australia between 2019 and 2023. Linear TV ad revenue is forecast to slip by 1.1% to $3.4 billion and broadcast-on-demand (BVOD) is expected to grow 27.7% to $441 million.
In this battle for advertising dollars around video, social media companies have been able to boast significant reach figures to advertisers, compared to traditional TV.
In Australia, where social media users are some of the most active in the world, 15 million people are on Facebook and 6.4 million on Snapchat, or, 60% and 25% of the total population, respectively. On the
