The past 18 months have seen a monumental change in the Australian television landscape with the introduction of three new Free TV digital multi-channels providing viewers with more choice than ever before.

We talk to Free TV network sales directors about how the new channels are faring and discuss the different ways clients are taking advantage of the new offerings - helping advertisers target a range of different demographics and build incremental reach.

Click on the links below:

Kurt Burnett, Seven Network           |           Peter Wiltshire, Nine Network           |           Kylie Rogers, Network Ten


Kurt Burnette, Network Director of Sales, Seven Network

How has 7TWO been positioned in the marketplace?
We have created a counter-programming strategy for 7TWO to ensure that our multi-channel is clearly differentiated from the main channel offering, for both viewers and advertisers. A key priority has been to encourage our advertising clients to use 7TWO to appeal to an alternative target audience than they do using our main channel.

Amongst our existing client base, we are seeing companies use 7TWO to advertise some of their other products or brands that haven't had exposure on TV in the past. One example is movie studios, which are now using multi-channels to appeal to more particular demographics for more targeted movies. In addition, clients are now choosing to road-block certain timeslots: for example, at 8:30pm on a Thursday, you can get two completely different audiences using two different channels on the one network.

How successful have the multi-channels been in attracting new advertisers who may not have thought of television as an affordable option before?
In terms of attracting new clients, 7TWO has been incredibly successful - we expected that. There has also been a lift in what we call non-traditional TV users - for us, this is being driven by some of the insurance groups, financial markets, and male product categories.

We're also seeing a big lift in local retailers advertising on 7TWO, as the cost of entry is becoming a lot more feasible for their businesses. Interestingly, after seeing how well advertising on 7TWO worked for them, some clients start to sample more advertising on our main channel!

How does 7TWO compare to an equivalent pay TV channel when it comes to key advertising benefits?
It all comes down to reach and efficiency. The multi-channels are efficient for advertisers in terms of return on investment. One spot on 7TWO equals ten spots across the pay TV group, in terms of reach and ratings. Right there you have a level of efficiency for the business.

Ultimately the success of the channels is dictated by the success of the clients. We are already getting continued support from advertisers, and this shows that our multi-channel strategy is working.

What other new advertising opportunities are available to your clients?
7TWO is an important part of the business, and we have resourced it accordingly to ensure clients get everything they need and to help the market engage better with multi-channels. Production, creative advice, cross-platform initiatives, and strategic capabilities are all part of the day-to-day services we offer.

Our 'Rafters Reach Package' is one example of how we make advertising with us more efficient and effective for our advertisers. You can buy spots in the current season of Packed to the Rafters on Seven, a spot in series one of Packed to the Rafters on 7TWO, and a spot on our online catch-up TV service on Yahoo!7. It provides advertisers with the opportunity for much deeper engagement with the viewers of that particular program - where, and when, they want it. 


Peter Wiltshire, Director of Sales and Marketing, Nine Network

How has GO! been positioned in the marketplace?
GO! targets a different, younger demographic audience to Channel Nine and is scheduled to complement Nine at all times. For example, while Top Gear is screening on Nine, you might find The Bachelor on GO!

By offering this breadth of choice across our channels, our network appeals to the widest possible range of viewers and therefore advertisers. This strategy has grown our total viewing, allowing us to grow our share of client spends. New audiences have equaled new revenues.

Our channel strategy is designed to minimize cannibalization. In fact, by growing our overall audiences, our strategy has increased our ability to offer value to advertisers.

In a market where demand for television spots has outstripped supply, GO! has been able to retain revenues within TV.

How successful have the multi-channels been in attracting new advertisers who may not have thought of television as an affordable option before?
GO! has already brought over 120 new advertisers to the network. Many of these advertisers had either never used TV before, or were lapsed TV investors. GO! has created a new opportunity for these advertisers to engage with their audience in a fresh and compelling environment.

GO! delivers the biggest audiences of any multi-channel in Australia. This scale, coupled with our advertiser-friendly demographic profile and a unique pricing policy, has made GO! the most successful revenue-generating multi-channel.

Much of this growth has also come from our existing advertising partners, as our strategy has reduced wastage and improved efficiency and pricing for them.

How does GO! compare to an equivalent pay TV channel when it comes to key advertising benefits?
GO! is simply more efficient and more effective. This is because GO! offers higher reach, more cost-effectively. In addition, by offering regional splits, GO! allows advertisers to more efficiently manage their message for individual markets, giving regional advertisers the flexibility they require.

What other new advertising opportunities are available to your clients?
GO! offers something new to viewers, so we've made sure it also offers something new to advertisers. We have a dedicated direct team, new advertising formats, new creative solutions and new advertising opportunities. We are able to offer all of these in-house at very attractive rates. GO! offers opportunities and value for advertisers that it just isn't possible to get anywhere else. 


Kylie Rogers, National Sales Manager, Network Ten

How has ONE been positioned in the marketplace?
As a dedicated free-to-air sports channel, ONE has a clear point of difference for advertisers. There is no other free-to-air channel of this genre in the market. ONE provides a unique opportunity for advertisers seeking to align themselves with sporting content, and to reach the channel's targeted audience of sports lovers.

ONE is particularly effective in delivering the hard-to-reach male viewer, but is also positioned to appeal to both genders - netball and swimming are examples of sports that have broad appeal to women and men.

It is attracting existing clients wishing to extend their reach, as well as new clients seeking to align themselves with ONE's distinct audience. It is also attracting clients who are aligned with particular sports - such as Mercedes, Vodafone and Bridgestone, who are associated with Formula 1.

How successful have the multi-channels been in attracting new advertisers who may not have thought of television as an affordable option before?
We have had a number of advertisers new to the television platform. These include TEAC, which has redirected all of its advertising spend in this market from other media platforms, putting the brand on TV for the first time - globally - on ONE. Others new to TV include our major partner Sportsbet, as well as 2K Games. In addition, clients such as Ashley & Martin, Brut and Rebel, as well as sporting apparel brands Skins and UnderArmour, have all redirected their entire TV spend exclusively onto ONE.

How have the multi-channels managed to avoid cannibalising the primary channels' advertising revenue?
It is imperative that the new digital channels add to the total pool of advertisers in the television market, rather than simply shift money around. Our success here again comes down to the targeted nature of ONE. We have always said that our strategy, both in terms of audience and advertising revenue, is TEN + ONE = more.

Having a clear point of differentiation has been important for ONE. The fact that it is so specifically targeted in its offering is ensuring minimal cannibalisation of the primary channel.

The distinct environment created on ONE also includes a strong level of viewer engagement (a key feature of sports programming) and a highly contextualised platform for advertiser messages. In turn, this is translating into sales results for our clients.

How does ONE compare to an equivalent pay TV channel when it comes to key advertising benefits?
Audience reach is key. Pay TV reaches about 30 per cent of our market. Digital channels already reach more than 70 per cent and growing. Within three short years, that will be 100 per cent.

What other new advertising opportunities are available to your clients?
ONE offers 'best in class' integration capabilities. Our newly established ONE Vision production unit is creating highly effective, integrated client content, as well as producing client commercials. An example is our branded 'category' segments, such as our ONE Technology segments with Harvey Norman. For new advertisers, this is both a convenient and accessible 'one stop shop' and helps make the journey onto television easier, more integrated and more effective.

Published August 2010