Foxtel going hard on streaming

The video advertising battle is set to ramp up as Foxtel looks to take advantage of its new-look offering and vast trove of data.

The video advertising battle is set to ramp up as Foxtel plans to take advantage of its new-look offering and vast trove of data.

Mark Frain, chief executive of advertising business Foxtel Media, says advertisers will benefit from the major investment in the pay-TV and streaming operations as audience numbers grow, as well as the introduction of new ad formats and the availability of more extensive audience data.

Since Patrick Delany took over at Foxtel nearly two years ago, the business has bolstered its entertainment and sport content, rolled out new iQ3 and iQ4 set-top boxes, invested in its streaming platforms, Foxtel Now and Foxtel Go, and launched sports streaming service Kayo Sports.

‘‘The end destination of what Foxtel Media is building is a 100 per cent addressable, premium video network, across linear TV and on-demand viewing,” Mr Frain told The Australian.

‘‘We sit in an enviable position with the depth of Foxtel’s data assets and across both set-top box and IP, we have projects under way to realise the potential in becoming 100 per cent addressable, at a household or device level. It is this level of advancement that will be critical to drive commercial success in the video advertising landscape as agencies and advertisers seek competitive advantage through smarter advertising models and formats.’’

Mr Delany said Foxtel had "spent a lot of money” on data, including data engineers and analysts, over the past year to keep customers and advertisers happy.

‘‘We’re a very big streaming company now across the Foxtel group and we’ve got the most data,’’ he said.

‘‘We are really going hard on streaming and data.’’

Foxtel's operational overhaul has led to an increase in viewers, with about 53 per cent of iQ4 customers using video-on-demand in October, compared with 45 per cent in July before the changes.

Total video-on-demand more than doubled in October from the same month last year, driven by its sport and movies offering.

‘‘Depending on the genre, that on-demand experience is going to go up,’’ Mr Delany said, adding Foxtel had also implemented what it has learnt from Kayo and adapted that on the set-top box.

Some key brands that have already purchased Foxtel's new six second ad format, include Hungry Jack’s, Aldi, Volkswagen, Telstra, Hyundai and McDonald’s.

Kayo has also helped bolster Foxtel’s ad client list, which includes Flight Centre, Gillette, 2K Games, Instagram, MasterCard, Castrol and Kellogg’s.

Foxtel is majority owned by News Corp Australia, publisher of The Australian, with a 65 per cent stake and the remainder is held by telco giant Telstra.

Foxtel’s push to attract more advertisers comes as Australia’s biggest media companies join forces to remind business leaders of the importance of advertising, with a major ad campaign over summer.

The advertising market has been very tough this year, as companies either pull back on spending or seek out better value.

News Corp Australia, Nine Entertainment, Southern Cross Media, Seven West Media and oOh! Media are among the companies to launch the ad campaign that will run across outdoor advertising, print, digital, radio and TV until the end of February.

The ad tagline, ‘‘If your brand’s not here, it’s nowhere’’, is supported by a website known as advertiseordie.com.au, and attempts to remind business leaders of the dangers of not advertising their products.