How advertisers can capitalise on the new era of premium video inventory  

The rapid rise of ad-supported streaming is reshaping the premium video landscape in Australia.

Yael Milbank, local managing director at Magnite, explores how advertisers can strategically capitalise on this shift.

The streaming landscape is shifting fast, and advertisers need to move with it.  

Several global streamers have now launched ad-supported tiers in Australia, and by 2027, Netflix is projected to become the country’s third-largest ad-supported streaming service. With more platforms expected to follow suit, this marks a significant turning point in how audiences consume premium content and how advertisers can reach them.  

What we’re seeing now is not just a trend, but a fundamental evolution in how premium video is monetised. Australia has long been a mature and progressive market for premium video ad consumption, and this is now growing to include global streamers’ ad-tier advertising opportunities.     

One of my predictions for this year was that streaming services would double down on ad-tier strategies—balancing subscriber growth with ad revenue potential. And it’s already happening. As more platforms roll out their ad-supported offerings, the question for advertisers is: how do you capitalise on this growth while maintaining quality, effectiveness, and scale?  

The growth of ad-supported streaming  

The rise of streaming hasn’t cannibalised traditional TV viewership — rather expanded it – as both BVOD and TV streaming remain dominant audience platforms in Australia.  

Younger audiences in particular are embracing BVOD platforms, giving advertisers a valuable, brand-safe environment to connect with these hard-to-reach demographics.   

The introduction of ad-tiered streaming models offers consumers the opportunity to align their viewing preferences on their preferred platform. People want choice – whether it’s fully ad-free, ad-light, or fully ad-supported options, viewers are selecting platforms that offer flexibility.  

This evolving mix enables advertisers to reach highly engaged audiences across diverse segments and tailored to their viewing and platform preferences.  

How advertisers can capitalise on streaming ad tier growth  

  1. Leverage premium video inventory and first-party data

Data and content are the currency of ad-supported streaming. In Australia, major broadcasters like 9Now and 7plus are collaborating with streaming platforms to enable advertisers to buy BVOD inventory programmatically enriched with cross-platform insights. This provides advertisers with richer data and robust measurement capabilities to deliver better planning, targeting and measurement.  

At the same time, leading SSPs are partnering directly with streaming providers to give advertisers access to premium, curated inventory, and to allow them to strategically choose partners and inventory that match their specific goals. This helps remove the guesswork and unlock greater campaign performance.  

By pairing this high-quality inventory with robust first-party data, advertisers can make smarter decisions about where their ads will have the greatest impact to reach the right audiences in the right moments.  

Australian audiences have high expectations around ad relevance and quality, and competition for premium inventory is only going to intensify. Strategic ad placement and the right tech partners will be crucial.  

  1. Innovate with next-gen ad formats

As ad-tiered streaming matures, we will also see more innovation in format and delivery. The days of simply repurposing traditional 30-second spots are soon to be behind us. Viewers are beginning to expect ads that are engaging, interactive, and in some cases, shoppable.  

This year, we can expect to see more interactive, commerce-driven ad experiences, and we are already seeing early adoption of next-gen formats like:  

  • Shoppable TV ads that enable viewers to buy directly from what they’re watching.  
  • Ad selectors, giving users the option to choose which ad they see, boosting engagement and recall.  
  • Interactive ads that invite participation rather than passive viewing.  
  • Pause ads that display unobtrusively when content is paused, making use of natural breaks.  

Brands that embrace these formats and ensure they’re integrated seamlessly into the viewing experience will drive higher ROI than those relying solely on traditional creative approaches.  

  1. Prepare for media spend consolidation trends

As agencies consolidate media budgets and seek efficiencies, there’s a growing demand for integrated, cross-platform solutions. For advertisers, this means thinking holistically and not treating linear TV, BVOD, and streaming as siloed channels – it’s all premium, professionally produced content.   

A unified planning approach will enable advertisers to optimise reach and frequency, reduce wasted ad spend, and build stronger brand narratives across the entire video ecosystem.  

This consolidation is also reshaping the dynamics of supply and demand. As more premium inventory becomes available via programmatic channels, advertisers will need to act quickly and strategically to secure the best placements.  

Yael Milbank

Now is the time to act 

The expansion of ad-supported streaming tiers represents a major shift in how premium video is consumed, measured, and monetised. For brands and agencies, this is a critical window of opportunity.  

Australia’s market maturity, especially in BVOD adoption and measurement, means local advertisers are uniquely positioned to lead the way in global streaming strategy. But success will require bold moves: embracing data-driven planning, accessing premium inventory through the right partners, and experimenting with new formats that meet evolving viewer expectations.  

The future of video advertising is being shaped right now – and the brands that adapt quickly will gain a significant competitive edge.  

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