Foxtel Media, ad agencies, look to the future of audience engagement

Foxtel Media will partner with ten top tier brands and their advertising agencies to road-test fresh methods of engaging audiences.

Foxtel Media CEO Mark Frain. Picture: John Feder

Foxtel Media will partner with ten top tier brands and their advertising agencies to road-test fresh methods of engaging audiences, as the subscription streaming industry continues to rapidly evolve.

The announcement of the initiative, called FOXTEST, comes just a fortnight after the launch of Foxtel’s latest streaming service, Flash, which is a live news platform that houses the content of more than 20 internationally renowned media brands, all in the one place.

FOXTEST will “help brands explore the future frontiers of advertising”, according to Mark Frain, the chief executive officer of Foxtel Media.

“Watching the global trends of advertising, and how some of the big players are doing it differently, we knew we needed to plot the future path together with our advertising clients,” he said at the launch of FOXTEST on Wednesday.

“Rather than dictate what brands and agencies should be doing, we’re inviting them into the tent and working together to solve the big challenges that we face as advertising transforms and intelligent video becomes the new reality.”

The Foxtel Group has invested $3 million in the project, with the funds contributing to research into the impact of lower ad loads on advertising performance, and the co-creation of new ad formats or tactics to enhance and command more customer attention.

The project will seek to help Foxtel’s streaming services strike the balance between an ad-free model and one with a more tailored ad load, Mr Frain said.

It will also consider trialling different engagement metrics, such as a viewers’ mental focus, intent, social connection and emotional investment, he said.

Former CEO of US-based streaming service Hulu, Randy Freer, told the launch that FOXTEST would help Foxtel stay ahead of the curve in an industry that is changing rapidly, both in delivery and in its approach to advertising.

Foxtel has a breadth of content that its rivals don’t, strong relationships with brands, and a rapidly-growing customer base, Mr Freer said.

“You have to think about the customer — you should experiment, you should try things, it is not a transaction,” he said.

“These are opportunities to provide value to customers in an ad-supported environment, because if we don’t do that as an industry, more customers will choose to opt for ad-free media.

“This gives customers a lower pricepoint and hopefully they will embrace the brands and Foxtel in the process.”

Foxtel Group CEO Patrick Delany said FOXTEST would continue Foxtel’s push to become more “customer-focused, IP-led, and Australia’s most dynamic streaming company.”

Foxtel (which is 65 per cent owned by News Corp, publisher of The Australian) currently has over four million subscribers, Mr Delany said.