Finally, it’s here. Media buyers have welcomed the long-overdue switch to a single national TV currency across linear TV and BVOD. VOZ officially rolls out on 29 December, but the transition could create some short-term pain.
TV audiences will be measured and traded using a single TV trading currency at the end of this year. Virtual Australia (VOZ) brings measures audiences across linear TV and BVOD, providing a single source of truth and currency for advertisers and media buyers alike.
Currently, media planners and buyers have to navigate separate measurement and trading systems for linear TV (such as CPM, CPT or discount position) and BVOD (CPMs), using different sets of data and their own internal systems to arrive at a Total TV audience.
VOZ promises to provide a single source of measurement and currency not only across linear TV, streaming and BVOD, but also different devices and geographies (combining regional and metropolitan figures) across Australia.
This provides a national picture of TV audiences and not only redefines how TV audiences are measured, but also how TV inventory is traded and, more importantly, how TV is being sold in to advertisers at a time when linear TV revenues are in double-digit decline with more than $300 million in revenue leaving the linear market in 2023.
“VOZ tackles a couple of things. It gives us de-duplicated reach across broadcast content and BVOD content. It will allow buyers to understand how to optimise their investment for demographics across different platforms,” OzTAM CEO Karen Halligan told B&T.
“They can do that from a planning context at the moment and have been able to for quite some time, but what will happen in December is that the primary trading currency will change to VOZ so all of the agency systems of planning and buying, reach and frequency, will change over to VOZ instead of being out of TAM.
“This is in the best interests of everybody because it’s a more accurate reflection of audiences and also factors in duplication in TV broadcasting.”
‘The longest drumroll on record’
Media buyers speaking to B&T welcome the move to harmonise TV measurement and currency, which has been in the works for several years.
“The evolution in measurement is critically important to both agencies and our clients. It brings increased measurement accuracy and trading efficiency to the TV landscape as the sector continues to undergo seismic structural changes in viewing consumption,” Zenith Australia chief investment officer Elizabeth Baker said.
“Zenith has been utilising the data already in our planning and optimisation tools, and we look forward to now being able to more easily trade across the combined platforms of linear TV and BVOD.”
Nik Doble, Mindshare Australia’s national head of investment, echoed these sentiments, saying: “We welcome the change to reach and buy audiences more effectively. This is a comprehensive, national, de-duplicated measurement of the total TV audience across all screens, platforms, linear and on demand.
“In the transition phase naturally there will be challenges because you are moving from one data set to a new set. So until you have that legacy data there will no doubt be some challenges to navigate. But ultimately the effectiveness of what we do will be elevated.
“So a bit of short term pain, but in the long term, more effective planning.”
Avenue C media director Carolyn Northcote said she was “personally excited” a date had finally been set, describing the protracted process as one that “feels like the longest drumroll on record”.
“The media industry really need this new currency to ensure that our client campaigns are delivering to the high standard we commit to our clients. Massive congrats to all involved,” she said.
“The industry have had six months to get used to the metrics used across the trade press, and we’re beginning to familiarise ourselves with the adjusted data. But will it impact our planning? Definitely, but the industry should overcome this quickly.
“I do foresee a change in how we buy BOVD specifically. Will we move away from standard BVOD trading? I think it’s likely. The likes of linear and VOD combined buys will become critical in how we deliver to specified buying guidelines. Historically, we buy linear according to numerous, and sometimes too highly, quantitative parameters.
She added: “We believe this change will benefit the end advertiser by allowing for more natural audience buying against the total TV market.”
‘A more compelling argument’
Atomic 212’s national trading lead Jay Malig admits that the industry will need to go through a period of “rewiring and education”, but the upside could be a “massively positive” for the TV sector.
In fact, Malig believes that VOZ could change the TV conversation agency partners have with clients, altering perceptions about declining linear audiences and, ultimately, making the ‘total TV’ advertising proposition more appealing.
“Linear TV is fragmenting and a lot of those audiences are moving towards digital and BVOD. We can now argue that those audiences haven’t left, they’ve just moved to a different screen within the TV ecosystem,” he said.
“It not only helps in terms of trading and transacting with the networks, but it potentially produces a more compelling argument for the TV networks by showing advertisers that their audiences are still quite substantial across their network, not just linear TV and BVOD separately.”
After years of gentle lobbying for a simplified approach to TV measurement and trading, industry leaders across the spectrum hailed the milestone.
“VOZ represents a quantum shift in total TV audience data capability and is a remarkable achievement,” MFA CEO Sophie Madden said.
“Overcoming the complexity and technical challenges to bring this to market has been no small feat, made possible through the substantial investment by broadcasters, third party software suppliers, and MFA members collaborating on an industry solution for all clients. Industry education and training is the next crucial step to ensure a successful rollout and we will continue to partner with OzTAM until this goal is met.”
The ANNA’s CEO Josh Faulks added: “In a tough economic climate, it is no surprise advertisers are looking for more accurate audience measurement to ensure their marketing investment is delivering results. Congratulations to OzTAM on their herculean effort in bringing the industry together to achieve a step change in audience measurement for TV through VOZ.”
All this will be music to the ears of senior executives at Nine, Seven and Paramount ANZ, who have struggled to convince advertisers to shift linear TV budget leakage into their BVOD and their broader video proposition.
In 2015, commercial TV revenue made up 46 per cent of advertising budgets in 2015, but in 2023 the figure fell to 31 per cent. Last year, TV revenues declined by 11 per cent, one of the largest drops in history.
As viewers increasingly consume video content via BVOD and live streaming, advertisers and media buyers have been calling out for a simpler and streamlined approach to measuring and trading linear TV and BVOD audiences.
In late December, the industry’s wishes will finally be granted. Although the short-term transition to VOZ promises to be a bumpy ride, most agree it’s a step in the right direction. What is less certain is whether it will be enough to sway advertisers who are spending fewer dollars on TV to jump back onboard.
