Broadcaster VOD: The Bigger Picture
Last Wednesday, I attended the Thinkbox event Broadcaster VOD: The Bigger Picture. It was the first occasion in which ITV, Channel 4 and Sky had joined forces and pooled their considerable resources to examine shifting viewing consumption. In particular, how that viewing shift relates to Broadcaster VOD (video-on-demand).
Dubbed ‘Project Firefly’, this unprecedented alliance underlines broadcaster anxiety in response to Netflix and Amazon. Using state-of-the-art research, neuroscience and first party data, the seminar established why BVOD deserves its premium status.
Whilst TV is the prime and tested real estate, the elephant in the room is VOD. There has been a 35% year on year growth in VOD consumption, marking a fundamental change in viewing patterns.
It’s within the crucial 16-34 age bracket that the shift towards VOD is most apparent. The major sales-owners estimate 15% of TV viewing on top of the industry standard for 16-34s, equating to an extra 12 mins per day.
Whilst BVOD may only account for 4% of our video day, it has a very high ad view-through rate at 93%. As such, it benefits from the advantages of both TV and online.
Significantly, half of all BVOD viewing is on the big screen as opposed to a tablet, PC or smartphone. Content is simply more engaging on a full screen. For advertisers, this strengthens brand affinity, in a warm and innovative environment.
This then translates into the most effective form of advertising: talkability and word-of-mouth.
Further, whilst 22% of online video goes to fraudulent traffic, TV is 100% regulated and brand safe. This means that BVOD content is bot-free, scalable and effective. This enables a high dwell time, within a trusted environment.
Significantly, there is a 15% increase in purchasing when BVOD is used in conjunction with linear TV. Although BVOD can work on its own, utilising both linear TV and VOD together is the most powerful combination for an advertising brand.
It is this changing viewing hierarchy we must continue to harness to further drive awareness and ROI for our clients.