Has commercial TV hit rock bottom?

Total TV advertising revenue declined to $3.28 billion in FY24, driven by a 12% drop in metropolitan FTA markets.

David Kennedy · Venture Insights16 August 2024Period: FY244 min read

8.1%↓

Decrease in Total TV advertising market revenue (FY24)

$441M↑

Broadcaster Video on Demand (BVOD) revenue (FY24)

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Abstract

This report analyses the recent performance and future outlook of the Australian commercial TV advertising market. Total TV advertising revenue, excluding SBS, fell 8.1% to $3.28 billion in FY24, primarily due to a significant 12% decline in metropolitan free-to-air (FTA) revenues. While Broadcaster Video on Demand (BVOD) grew by 12.7%, it remains only 13% of total industry revenue. The brief forecasts a further 4% decline in FY25 before a return to growth in FY26 as economic conditions improve.

Key Takeaways

Total TV advertising revenue fell 8.1% to $3.28 billion in FY24, driven by a sharp 12% decline in metropolitan FTA.
BVOD revenue grew 12.7% to $441 million, but only accounts for 13% of the total market, failing to offset broadcast losses.
Venture Insights forecasts a further 4% revenue decline in FY25 before a return to 3% growth in FY26.

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Frequently Asked Questions

Total TV advertising revenue contracted by 8.1% to $3.28 billion in FY24. This downturn was primarily driven by a sharp 12% collapse in metropolitan free-to-air revenues, while regional markets showed more resilience with a 5.5% decline.

Broadcaster Video on Demand (BVOD) revenue grew by 12.7% to $441 million in FY24, but this is insufficient to bridge the gap. Digital currently represents only 13% of total industry revenue, failing to compensate for the double-digit losses in linear broadcast.

The market will remain in contraction through FY25 with a forecast 4% revenue decline. A recovery is not expected until FY26, when improving economic conditions are projected to deliver a 3% increase in total advertising spend.

The industry currently invests $1.6 billion annually in news, sport, and local content, but this spend is threatened by a 'bruising' period of cost-cutting. Furthermore, the anticipated 10-year phase-out of gambling advertising creates a significant long-term structural risk to revenue stability.

Has commercial TV hit rock bottom?

Abstract

Key Takeaways

Frequently Asked Questions

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