BVOD advertising: an introduction

Dec 16, 2024 / Tips and Advice / FOTW

As advertising evolves with new technologies, Broadcaster Video on Demand (BVOD) has managed to combine the broad reach of traditional TV with the precise targeting and analytics of online video.

It’s a powerful mix, and has become a popular choice for brands looking for effective and far-reaching marketing channels. Let’s explore why!

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What is BVOD?

BVOD refers to the streaming and on-demand services provided by traditional television broadcasters. In the UK, these services include platforms like ITVX, BBC iPlayer, Channel 4 Streaming, My5, Sky Go, and UKTV Play. 

These platforms give viewers the flexibility to access high-quality, professionally produced content online, anytime, and on any device. This suits modern viewing habits perfectly, as people can watch the content wherever they are – on a TV, smartphone, tablet, or PC.

The BVOD model complements traditional linear TV by offering live streaming of channels, catch-up services for missed programs, exclusive digital content, and archives of past shows. While much of this content is free to viewers, it is often ad-supported, so broadcasters can generate revenue while remaining accessible. 

How does BVOD work?

Content is professional and distributed on-demand

BVOD is all about high-quality, professional content from traditional TV broadcasters, so it’s not like the random user-generated stuff you find on YouTube or Facebook. Originally, BVOD was mainly for catch-up TV, letting you watch shows after they aired on live TV. But now, it’s way more flexible and most platforms have a wide range of shows both new and old available. 

Plus, many BVOD platforms also offer live TV streaming, so you get the best of both worlds. It all runs through over-the-top (OTT) services, meaning you can watch on TVs, smartphones, tablets, and PC

BVOD platforms are funded by ads

BVOD platforms are part of the AVOD (Advertising Video on Demand) family, meaning they’re funded by ads rather than subscriptions (like SVOD) or individual transactions (like TVOD). These ads can pop up before, during, or after the content and are typically unskippable, interactive, and clickable, letting viewers engage directly with brands.

BVOD platforms both license and produce content

BVOD platforms, being free or low-cost, need high quality, engaging content to draw in viewers, keep them interested, and prevent churn. After all, one of the main reasons people leave a service is a lack of fresh content. 

While the big VOD services and their TV network affiliates can often produce their own content, many BVOD platforms get their content by licensing it from traditional broadcasters. In these licensing deals, content sellers usually earn a portion of the ad revenue generated by the content, helping both parties profit from the arrangement.

BVOD relies on data

As the BVOD market gets more competitive, the key to success will be using big data insights to understand consumer trends, spot profitable opportunities, and maximise revenue. BVOD services use software to gather vast amounts of data, normalise it across platforms, and identify which content drives the most ad revenue.

Content sellers and distributors can tap into various types of data: user data (like demographics and behavior), content data (such as popularity and engagement), and financial data (like budgets and contracts). With this, they can accurately value content, predict how it will perform, and fine-tune licensing deals. 

Why BVOD is growing in popularity

During the pandemic, BVOD saw massive growth in the UK, Canada, and Australia. It gives viewers free access to high-quality broadcast content on-demand, using any device and from any location, unlike the fixed schedule of linear TV. 81% of homes in the UK now have a TV that is connected to the internet, so access to BVOD is easy for most. 

BVOD’s appeal is clear: it allows people to stream high-quality content anytime, anywhere, on any device. In the UK in 2023, BVOD viewing grew by 23% year on year which is a substantial increase.

The benefits of BVOD advertising

Precise targeting

One of the biggest perks of BVOD is the precise targeting options, which let you reach your ideal audience based on factors like content type, location, language, gender, and demographics. What makes this even better is you don’t have to rely on third-party data— you can get direct access to first-party data from the broadcasters or platforms that own the BVOD service. This ensures ads are seen by the right people, boosting ROI on campaigns.

Broadcasters like ITV, Channel 4, and Channel 5 have extensive first-party data from their VOD viewers. For example, Channel 4 offers several targeting options on All4, including demographic, interest-based, contextual, and even “Brandmatch,” which allows you to use their own customer data to find matching viewers. Sky also holds valuable household-level data. 

These insights mean you can create hyper-targeted campaigns with personalised messaging for each audience. 

Brand safety

While both AVOD and BVOD offer ad-supported content, BVOD gives you more control over where your ads appear. This added control helps ensure that ads are placed in the right context and with the right audience. Plus, since BVOD platforms come from well-known, reputable broadcasters, you can feel confident that your ads will be associated with high-quality, trusted programming. This reduces the risk of your brand being linked to inappropriate or offensive content, helping to maintain your brand image and reputation.

Increased reach

BVOD offers a unique advantage for advertisers, as you can target niche audience segments, such as cord-cutters, who are typically unreachable through traditional TV advertising. This is particularly valuable for brands trying to connect with younger, tech-savvy generations.

BVOD is also a great way for brands to test TV advertising. You can dip your toes into the TV space without committing to massive budgets, and fine tune what works for your brand. A “burst strategy,” which involves targeted, short-term campaigns, is a smart way to build exposure while staying within budget.

Better ad performance

BVOD viewers are generally more engaged than traditional TV audiences. They actively seek out high-quality content and are more likely to watch ads that align with their interests, which often leads to higher ROI and lower costs for advertisers.

Research by Thinkbox found that BVOD is the least risky video advertising investment, offering the most predictable returns.

More flexibility

One major advantage of BVOD advertising is flexibility. You can adjust your campaigns in real time based on viewer behavior, allowing for quick changes to messaging or targeting. The increased competition within the BVOD sector also brings benefits, as broadcasters are eager to attract more brands, making media packages more competitive and accessible.

For brands with new TV ads, testing them on BVOD first can be a smart move before moving to traditional TV. 

Trackable campaigns

BVOD advertising eliminates concerns about fake impressions and bot clicks, which are common issues with platforms like Google Ads and YouTube. This is a major advantage for brands, as the BVOD model ensures accurate tracking. Since BVOD platforms require users to have accounts, which include data on age and viewing preferences, you can easily access insights about who is watching and when.

Will BVOD stay relevant?

As linear TV continues to experience slower growth, BVOD has firmly cemented itself as part of regular viewing for the average Brit. Growth has really surged, and while reality TV was once the bread and butter of BVOD, news, dramas, and international shows are now gaining traction, drawing in a wider audience. The increasing variety in content means BVOD viewership is set to keep growing, and you can benefit from this audience expansion. 

What’s the difference between BVOD, SVOD, TVOD and AVOD?

BVOD fits into the broader VOD landscape, alongside its cousins:

SVOD (Subscription VOD): These are typically ad-free services where users pay a recurring fee. Services like Netflix and Disney+ fit here, but some are experimenting with ad-supported options.

AVOD (Advertising-based VOD): Free content, but with ads. Think YouTube or Facebook Watch, where viewers don’t pay but watch ads to access content.

TVOD (Transactional VOD): Platforms where users pay a one-off fee for individual pieces of content. iTunes and Google Play are good examples.

Choose Fall off the Wall for your BVOD campaign

FOTW is an independent, female-led, and employee-owned creative agency, driven by a passionate in-house team of talented creatives, 3D designers, and producers. We specialise in TV advertising and cutting-edge CGI production, with a focus on delivering compelling stories and creating engaging brand assets that connect with audiences across all screens. 

With a shared passion for creativity and design, our team is dedicated to helping you stand out, attract new fans, and craft impactful BVOD campaigns that make a lasting impression. 

Click here to get in touch with our team and learn more!