As more audiences shift away from linear TV, broadcasters and advertisers are continuing to embrace non-traditional platforms to reach audiences. Here, Amy Roberts, Head of Planning at Media Agency Group, delves into her predictions for the future of TV and advertising in 2023.
There have been many substantial changes in the landscape of television in 2022. TV advertising has moved forward in the way of SVOD (Subscription Video on Demand) platforms that have added advertising subscriptions, such as Netflix, ITVX, and Disney+.
But I want to delve deeper and discuss how some of the changes we’ve seen the beginnings of this year will evolve across 2023, and what these changes could mean for the future of TV and TV advertising.
Broadcasters and the younger audience
Younger audiences continue to move away from linear TV but we know they’re still watching big moments across broadcast TV such as Love Island, I’m a Celebrity and sporting events such as the Euros and World Cup. However, with most of the daily viewing for younger audiences (16 to 24 year olds) taking place on VOD (Video on Demand) and various streaming platforms, broadcasters are trying to meet younger audiences where they are by pushing more content online.
Recent examples of this would be Channel 4.0, a digital first channel on YouTube. This content destination will be home to content with a core focus of reaching, engaging and entertaining 13 to 24-year-olds. This, in turn, is changing the way advertising agencies are selling TV, by having a mix of linear and online, with the online element growing to a larger portion in campaigns as advertising options on SVOD and VOD increase.
How prominent will advertising across VOD be in 2023?
A study by Future Focus shows that over 2022, for advertisers to reach an audience of ABC1 adults they should be putting 10% of their budget into BVOD as well as linear to reach the same amount of people as they would’ve done just on broadcast in the past. For audiences such as households with children and 16 to 34 year olds, the study revealed that in 2022, 50% of brand’s broadcast budget for campaigns should be going into VOD to effectively reach those audiences. So in 2023 we expect that percentage to carry on increasing, especially now there are new spaces (e.g, Netflix adverts) to serve advertising in the VOD space.
Further supporting this, at MAG we’ve seen a sharp rise of impressions being served on smart/connective TVs for our Youtube Campaigns, which means greater audience numbers are watching YouTube on their TVs.
As for new opportunities, with both Netflix, Disney+ introducing advertising options, it will open a door and give campaigns the ability to reach more people. ITVX has also introduced many changes to their content and the way their streaming services works, one example being curated channels. So within this space, there will be unique opportunities here. For advertisers, 2023 will be about striking the right balance between meeting the demand of video viewers across multiple environments.
How willing are people to sacrifice their TV viewing in the cost of living crisis?
With the cost of living continuing to rise, consumer priorities have shifted. Recent data from Global shows that TV subscriptions are the number one priority across all audiences surveyed.
When asked what they’re planning to sacrifice vs keep, 60% will sacrifice nights out and 60% will sacrifice days out. Considering how high these numbers are, it means that many people across all audiences in 2023 will be choosing to stay at home, and therefore will be receiving their entertainment from TV. Overall, in 2023, even though financial sacrifices will be made, people aren’t willing to give up their entertainment from TV…
In 2023 there will be more TV to bring us together
In 2023, television will be all about the big moments. I’m A Celebrity All Stars will take place in South Africa, there will be two series of Love Island, the US Superbowl will be broadcast live, as well as the Euro 2024 Qualifiers, FA Cup, 6 Nations. Big Brother is finally returning, as well as returning well-loved shows like Gogglebox and GBBO.
I’d expect these new shows to draw in huge audiences in 2023 based on the data we have about how our audiences aren’t willing to sacrifice their home entertainment. Also, if we consider the viewing figures for these shows which aired very recently, it’s clear to see that viewing figures are on the rise.
For the latest season of I’m a Celebrity, the average audience over the three weeks was 9.1 million viewers, which is a million more than last year’s launch. 23 million viewers watched England vs France, giving ITV its biggest Saturday night for 20 years. Although there’s no World Cup next year, there will be plenty of new and returning content to draw these audiences in.
Across all of the above, I’d like to finish off by saying that 2023 will provide further evolution in the VOD space, and broadcast TV will provide the big moments audiences are looking to be entertained by.
