Television, as with many media platforms, has evolved significantly in recent years, adding layers of complexity to its utilisation. To navigate this dynamic space, businesses often need media planning and buying specialists, like MPA, who can ensure a maximised return on media investment.
Consider a contemporary popular show like "The Block". While its appeal remains unwavering among Australians aged 25-54, especially with the integration of Video On Demand (VOD) platforms, how do you determine the cost of reaching your desired target based on current season prices? Is it the optimal schedule to boost your brand's visibility and sales?
The Nuances of Modern TV Ratings and Costs
"The Block" captivates audiences, often securing the #1 spot on Free-to-Air channels nationally. Its VOD performance has been robust, offering a platform for viewers to catch up on missed episodes.
From a ratings perspective, the show undeniably warrants a tick. And if aligned with your budget, frequency - the number of times a viewer watches - would also get a nod given the show's consistent viewership.
In the current season, a 30-second ad placement in a major five-city buy costs $50,000+. Now, factor in the importance of frequency - ensuring viewers encounter your advertisement multiple times. For even mid-sized businesses, the numbers can quickly become daunting. Incorporating VOD, with its average $70 CPM (cost per 1000 completed views), however, can offer significant budget savings.
High-profile program sponsorships and branded integrations are still in play but come with substantial price tags. So, how can brands make impactful impressions without exceeding their budgets?
Enter the Reach and Frequency Schedules
Understanding viewer habits across various programs enables media experts like us at MPA to distribute your budget effectively across a diversified programming schedule. This not only ensures your target audience sees your ad multiple times but also broadens your reach to potential viewers outside your primary demographic. Typically, this approach is optimised on a single network, like the 9 Network, leveraging both Free-to-Air and VOD services. The result? A wider audience reach at a reduced cost per view, fostering new market opportunities and enhancing engagement potential.
The reach and frequency scheduling strategy strikes the right balance between audience reach, CPM, peak-to-off-peak ratios, and rate negotiation, ultimately driving superior ROI.
And while prime spots in top shows like "The Block" are undoubtedly valuable, a combination of varied programs can often hit that audience reach 'sweet spot', providing extensive exposure at a more affordable CPM.
Programmatic TV Buying: The Future of Media Purchase
2023 has seen a rise in programmatic television buying in Australia. This strategy offers myriad benefits, from hyper-targeted options, such as buying ad spaces aligned with competitor ads, to tailoring campaigns based on audience profiles and viewing habits across all networks. Integrating programmatic buying can redefine your campaign's success. Keen to explore? Reach out to MPA for insights into this service and other cutting-edge TV-buying tools
About the author
Alastair Noble
Alastair has a long and diverse background in media, with 25 years Australian, US & UK experience spanning Advertising Media & Management, Journalism, Public Relations and end to-end business leadership.