Television on demand: the advertising market is taking off

2023-12-20 17:39:08

Published on Dec 20 2023 at 6:03 p.m.Updated Dec 20 2023 at 6:39 p.m.

This is a big step for TF1 and a new perspective for the French market linked to video on demand offers. This Wednesday, the group presented its new platform, TF1+, which will be launched on January 8 and aims to make it a free application competing with Netflix and YouTube. With viewers and advertisers alike.

“Until now, MyTF1 was essentially a replay platform, while the French segment of AVoD [archyde news Video on Demand, ou télévision à la demande financée par la publicité, NDLR]was carried by alternative players or ‘pure players’ such as Molotov Channels, Pluto TV [Paramount], Samsung TV Plus, Rakuten TV, points out Philippe Bailly, president of NPA Conseil. This acceleration of a historic television heavyweight like TF1 marks a new stage, but also the intersection of several market segments: AVoD, FAST, [des chaînes numériques gratuites et financées par la publicité]connected television, replay and HVoD [comprenant l’offre payante des Disney et Netflix à tarif réduit et financée en partie par la publicité]. »

In France, this consolidated total should weigh around 420 million euros this year and reach 515 million in 2024, according to NPA Conseil. A significant level but far from the heights reached by the American market where AVoD alone is worth several billions and where many specialized players other than those also present in France abound: IMDb TV (Amazon), Vudu (NBCUniversal) , Roku Channel, Tubi (Fox)…: .

Brands in search of “brand safety”

“In France, there was no ‘cord-cutting’ [le phénomène de désabonnement aux bouquets de télévision, NDLR] which boosted this type of offer in the United States, explains Philippe Bailly. But the potential is very strong in France too. Which explains why other traditional players in linear television such as France Télévisions or M6 are also increasingly positioning themselves. »

New lines of income in perspective and activities that cannibalize each other less than it seems. “On the brand side, these offers are in no way a substitute for linear television, which makes it possible to reach a large audience very quickly. Especially since we see that those who watch programs on these platforms are above all people who also watch television, but less than before. It’s a complementary and additional use,” explains Jean-Luc Chetrit, general director of the Union des marques.

“These formats combine the best of both worlds”

And more and more advertisers are crossing the Rubicon. The reason ? “These formats combine the best of both worlds. Targeting is becoming more and more precise, while the potential audience is also very broad. It is both a media of notoriety and performance,” notes Jean-Luc Chetrit. “It’s a secure environment where the operator has control over the programs and where you know the editorial context in which your will be broadcast,” adds Raphaël de Andréis, president of Havas France. An imperative for many major brands in search of “brand safety” after the succession of bad buzz relating to problematic content on social networks.

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“Like segmented , these offers linked to on-demand programs open the market to new economic players, including SMEs, since the entry ticket is lower,” continues Raphaël de Andréis .

Which will not mean that the margins will be lower for a player like TF1. On the contrary. TF1+ will sell its inventories at a price of 15 euros per CPM [le coût pour mille contacts, soit le montant de l’investissement nécessaire pour atteindre un consommateur potentiel et si possible déclencher son achat, NDLR]. “This is the standard price for replay today. The CPM for linear television starts at 3 euros for the entire population and can go up to 11 euros for the 25-49 year old target,” explains a good connoisseur of the industry, recalling that on YouTube, the prices range from 8 to 11 euros.

The fact remains that the television market is far from collapsing in France. After two consecutive years of decline, the linear segment should even rebound by 2.6% in 2024, according to Magna (IPG Mediabrands), and almost return to its 2022 levels at more than 3.2 billion euros. net investments. “But the historic players are facing a slow erosion of their audiences and could not remain without reacting,” notes Damien de Foucault, former general director of Udecam (Union of media consulting and purchasing companies). The imminent arrival of TF1+ is an illustration of this.

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