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Advertising Buying Guide - PayTV

Practical information and tips for agency buyers, direct marketers and small to medium business on PayTV advertising....

Quick Facts

Guide Contributor:  Ben Allman from Multi Channel Network (MCN) which sells advertising across Australia's PayTV Stations.  See MCN's listing with MediaScope

PayTV Advertising - Overview

PayTV launched into Australian homes in 1995.  Since then the market has grown and further developed -

  • 1 in every 3 Australians have Subscription Television (STV)
  • Subscription TV (STV) has over 7.3million potential viewers in 2.4 million households
  • 80% of subscribers live in the eastern states
  • 40% of subscribers live in Sydney and 32% in Melbourne
  • Metro audiences deliver approx 70% of impacts and Regional 30%
  • 100% of Foxtel & Austar homes are digital
  • 54% of STV homes have a platform branded PVR (iQ or MyStar)
  • 4.9 million people watched STV out of their home in the past month including 3.5 million non- subscribers.

PayTV Advertising - Benefits

Greater Cut Through - STV on average has approximately 50% less commercial content than the commercial free to air (FTA) Networks. With less commercial minutage, STV allows a higher rate of viewer recall – 51% recall for 2 advertisements in a break, 42% for 5 advertisements and 31% for 8 advertisements. 

Targeted Channel Environments - with more than 60 premium STV channels advertisers can more precisely target the audiences they really want to reach.  STV delivers not only distinct demographic groups but communities of interest, which allows the target market to be reached with more efficiency.

High Value Customers - STV consumers have higher disposable incomes, greater purchasing power and on average STV households are significantly larger than the Australian average.

More Involved Viewers - Involvement is key in ensuring a deeper connection with the audience. STV research study conducted demonstrates 24% higher involvement to subscription TV channels than FTA.

The Forefront of Innovation - Interactive Advertising (iA) gives viewers the opportunity to interact with an advertiser’s message at the touch of a button through STV's Red Button technology. Viewers are also offered the ability to record long format advertising with just the press of a button through STV's Green Button technology.

PayTV Advertising - Key Media Terminology

PayTV Advertising - Audience & Traffic/Measurement StatisticsPayTV Advertising Screens

Thousands - STV audience deliveries are projected and tracked on thousands. This refers to the number of people watching within a target demographic. For example, if a program acheived a thousands rating of 28.5 against Women 25+ it means that 28,500 people within the Women 25+ demographic were watching

CPM - Cost Per Thousand refers to the average cost of reaching 1000 viewers within a certain demographic. For example, if your CPM is $100 against Women 25+ it is costing you $100 to reach 1000 viewers within the Women 25+ demographic.

PayTV Advertising - Briefing

Advertisers should brief PayTV stations with the following information as a minimum:

  • Campaign on air dates
  • Target demographic
  • Duration of TVC
  • Rough idea of investment

PayTV Advertising - Campaign Results

Advertisers should expect guaranteed delivery for all of contracted clients with a detailed campaign post analysis supplied upon the client’s request

PayTV Advertising - The Traps

PayTV's nation-wide signal can pose a disadvantage to market region specific advertisers as most viewership outside of the target market can be considered as wastage

PayTV Advertising - Forecast

Internet Protocol television (IPTV) is the next wave to reach Australia's media market.  It is described as the system through which television services are delivered using the Internet, instead of being delivered through traditional terrestrial, satellite signal, and cable television formats. See recent article by Nic Hodges - 8 Things About IPTV


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