TV ad revenue tanks but broadcast video on demand offers hope

Advertisers are looking to spend their dollars elsewhere as audiences for free-to-air television continue to wane.

.Free-to-air television networks suffered a dramatic slump in advertising revenue in FY24.

Free-to-air television networks suffered a dramatic slump in advertising revenue in FY24, with the industry’s total take plummeting by more than $250m from the previous financial year.

The total TV advertising market, which includes metropolitan free-to-air, regional free-to-air and Broadcaster Video on Demand (BVOD) but excludes SBS, recorded combined revenue of $3.3bn for the year to June 2024, down 8.1 per cent compared to the same period ending June 2023.

The metro free-to-air market bore the brunt of the downturn, shedding 12 per cent (equivalent to $300m) of ad revenue year-on-year – a clear sign that advertisers are looking to spend their dollars elsewhere as linear TV audiences continue to wane.

The regional FTA TV industry was also gripped by the downturn, with its ad revenue falling 5.5 per cent, year on year.

The one bright spot for the total TV industry was advertising investment in BVOD platforms 7plus, 9Now and 10 Play, with revenue for the total financial year reaching $441m, up 12.7 per cent year-on-year. The upturn in BVOD ad revenue partially offset the heavy losses of the wider TV industry.

ThinkTV chief executive officer Kim Portrate. Picture: George Fetting

The figures were released on Tuesday by ThinkTV, the industry body representing the Australian commercial TV networks.

ThinkTV CEO Kim Portrate said: “Despite some of the most challenging conditions in recent

history, the Australian television industry has shown remarkable resilience. These results reflect a sustained period of adaptation and innovation as broadcasters continue to evolve

to meet the needs of advertisers and viewers, ensuring brands remain front and centre

within the content Australians watch.

“The sustained growth of BVOD revenue underscores the value advertisers place on

premium, brand-appropriate content – particularly when it is supported by the ability to

target audiences with privacy-compliant first-party data solutions. The television industry is

confident this will drive ongoing investment and innovation as more brands move to a Total

TV strategy to maximise their business results.”