Broadcaster video on demand (BVOD) advertising is in demand with an £89m rise in 2018 spend to £391m, and is predicted to double within the next six years

The rise of on-demand viewing has created a scaled advertising proposition with a strong 16-34 profile – a relief for both broadcasters and advertisers, given the long-term decline in linear TV impacts for younger audiences

Big challenges remain: linear TV ad loads look excessive in on-demand, BVOD CPTs can be off-puttingly high, and measurement is still unresolved. BVOD is a welcome bright spot which faces online video competition head-on, but it won’t be able to turn broadcasters’ fortunes around alone

Contents

BVOD advertising market: overview

The sell side: the advertising proposition

The buy side: the rationale for using BVOD advertising

How BVOD is traded

BVOD within the wider online video advertising market

Broadcaster challenges

• Wider collaboration on metrics and audience measurement
• Media audits, CPTs and ROI
• Business philosophy
• Unsold inventory

Forecasts for BVOD advertising

• BVOD advertising demand

Conclusions

List of charts/tables

Figure 1. BVOD and online video ad revenues (£m)

Figure 2. Total broadcaster inventories

Figure 3. TV advertising sales houses – BVOD propositions

Figure 4. Campaign reach (1+ %) at given budget levels, 16-34s, 2013 v. 2018

Figure 5. TV and BVOD age profiles (claimed use)

Figure 6. Example adult CPTs/CPMs by ad format, 2018 (£)

Figure 7. BVOD viewing forecasts (mins/person/day)

Figure 8: BVOD advertising expenditure forecasts (£m)