Tuning In to Broadcast Video on Demand (BVOD)

Welcome to ‘Tuning In’, our new series that will examine the current state of a variety of different media channels and discuss their effectiveness for advertising. We will look at platforms across television, print and radio media to see how the industry is changing, how it’s staying the same, and where the best advertising takes place.

Today we’re tuning in to one of the relatively newer players in advertising: Broadcast Video on Demand (BVOD).

What is Video on Demand?

Video on Demand, shortened to VOD, is a way of consuming visual content that is stored online. VOD is a system that is defined by convenience: content is stored up online for viewers to be able to access at any time that suits them. VOD enables the viewer to pick and choose what content they want to watch, and when.

There are multiple different types of VOD including:

• Subscription VOD (consumers pay a subscription fee for ad-free content).
• Transactional VOD (pay-per-view content).
• Advertising-based VOD, (content is free but has ads).
• Broadcast VOD (content is from broadcasters directly).

What is Broadcast Video on Demand?

Broadcast Video on Demand is content from traditional television broadcast stations that is made available online for viewers to consume at any time. BVOD platforms appear like other VOD services, with content arranged into a library for viewers to browse. BVOD content is free and requires no subscription but is offered alongside un-skippable ads in most cases. In this way, BVOD closely resembles AVOD, with the key difference being that the content that is available comes straight from the traditional television broadcasters like Channel 10 or ABC.

Additionally, BVOD platforms offer live streaming, where viewers can watch the content being played live on the broadcast channel over the internet instead of through cable or satellite.

How is BVOD going?

BVOD experienced a significant breakout in popularity due to the pandemic. In the 12 months leading up to December 2021, BVOD experienced a 67.8% increase in advertising revenue, and is now analysed alongside linear TV rather than considered a smaller side-product.

BVOD also offers something that many subscription-based services do not: sport! Sport is a huge driver of Australian television viewing, and the significant events that broadcasters have rights to, like the Olympics, Ashes and Australian Open, can all be accessed through BVOD. The recent Winter Olympics were up 300% in viewership on 7Plus compared the 2018 games.

The pandemic accelerated a process already happening: free-to-air has been the star player for a long time now, but eventually the rookie benchwarmer BVOD will take that starring role. It’s no longer about if — it’s about when.

BVOD audiences and viewing

BVOD is a type of ‘lean-in’ media, where viewers are deliberately searching for and engaging with content on their terms. This is distinct from ‘lean back’ media, which is more passive and content that is happened upon, like videos on social platforms. With BVOD, advertisers can reach audiences who are actively engaged and more likely to remember advertising messages.

BVOD has grown alongside the breakout of Connected TV, which refers to televisions or devices that deliver content via an in-built internet connection (ie. Smart TVs and Chromecast). CTV offers consumers the opportunity to watch VOD services on their TV screens and viewing via CTV sets accounts for around half of all BVOD consumption in Australia.

What makes BVOD advertising so effective?

The BVOD model enables a particularly effective practice for advertisers: tracking. BVOD platforms require an account to be used, and these accounts contain details about age and preferences, meaning that advertisers can be fully aware of who is watching and when. Data provides information about audience numbers, minutes streamed and demographic breakdowns, helping brands and advertisers be more aware of who is watching what.

BVOD — and television in general — benefit from users likely being very close to a second screen. As a result, advertising on BVOD can prompt quick and accessible internet searching without losing the content or the flow of watching.

BVOD ads are typically un-skippable. You can be sure that viewers are seeing what you are advertising. And while these types of ads can frustrate viewers at times, if your advertising is fun, engaging and creative, they will be happy to watch along.

Will BVOD remain relevant?

BVOD’s steady growth turned into a sharp rise across the last two years, and both broadcasters and advertisers recognise the opportunity to appeal to viewers in this digital format. For example, Seven is focused on their ‘Enhanced Advertiser and Viewer Experience’ strategy which is designed to deliver more targeted and impactful ad breaks for viewers.

BVOD are also attempting to mimic the style of subscription streaming platforms by providing exclusive content online. Viewers are watching news content, exclusive dramas and overseas shows at increasing rates. With more types of content being sought by audiences, BVOD should see a continued increase in viewership and associated growth.

For advertisers, BVOD represents a cost-effective advertising space that is building in viewership. With the ability to specifically target key demographics and audience segments, and then track their viewing habits, advertisers can utilise BVOD to ensure that any money they are spending is being spent well.

BVOD has well and truly arrived, but its true potential has still yet to be seen.