Nine is confident its investment in advertising technology will allow the broadcaster to unlock a new revenue stream, selling digital video advertising to Australia’s 2 million small and medium sized businesses.
The broadcaster is launching a new self-serve platform, 9Vogayer, which will allow SMEs to access its 9Galaxy trading platform to buy a dynamic schedule across Nine’s off peak and multichannel inventory via credit card or PayPal.
Later this year all of Nine’s video on demand inventory will also be integrated into 9Galaxy, giving SMEs the chance to buy streaming inventory.
Announced at the company’s 9Upfront event in Sydney this afternoon, the move is aimed at making TV more accessible for SMEs and enticing them away from the likes of Google and Facebook, which have pocketed billions of marketing dollars by making effective ads easier to buy.
Prior to its launch early next year, Nine conduct a significant marketing and educational campaign targeting SMEs about how to use TV advertising, Michael Stephenson, Nine’s Chief Sales Officer, told Which-50.
“That is huge for the two million SMEs that currently only have the ability to do that with Facebook or Google. We are going to open up the most powerful advertising medium – television and premium online video – to that new marketplace,”
It’s estimated the direct digital video market for small to medium businesses could be worth more than $1 billion annually.
As a category, video advertising is booming. According to figures from IAB Australia, video advertising has increased 45 per cent year-on-year, to $1.3 billion. The growth has been attributed to marketers investing more brand dollars into rich media as they pursue consumers who have increased the total time they spend watching video on digital devices.
9Voyager users can provide existing creative through their agencies or 9Studios will develop bespoke creative for advertisers who are brand new to the medium.
When asked about the cost associated with producing TV advertising, Lizzie Young, Nine’s Group Content Strategy Director told Which-50, the broadcaster is already producing cost effective television commercials on behalf of its clients “for a couple of thousand dollars.”
“We produce television commercials for clients today for a very reasonable rate and that’s something we will open up to through [Nine’s native content business] Powered Studios,” she said.
During the event Nine also laid out a two-year technology roadmap for the 9Galaxy automated trading platform, which was first unveiled at the same event 12 months ago.
One year on and 9Galaxy is already booking close to 30 per cent of its off-peak and multi-channel inventory.
The next phases will be to integrate 9Now, the network’s video streaming platforming, into 9Galaxy, allowing linear TV and 9Now to be traded through one technology platform.
On the data front, by mid-2019, Nine will also have integrated both the Virtual Oz database and its seven million- plus 9User IDs (the people who have logged in to watch 9Now) into 9Galaxy, enabling advertisers to buy against behavioural segments like new car buyers or heavy shoppers, as well as age and sex demographics, across both linear TV and BVOD.
And by the end of 2020, Nine has promised that 9Galaxy will deliver all the audiences that marketers and agencies want to buy across the key inventory sources, across linear TV, live streaming and 9Now on a connected TV, mobile, desktop or tablet.