SBS to upgrade digital advertising offering as cross platform deals take a hit

With revenues flat after the global financial crisis, SBS is set to introduce technology that will give advertisers more flexibility in how they buy ads across SBS2, its digital TV channel.

SBS director of advertising sales, Mark Fairhurst, said that he expected splitting market buys for advertisers by geography – rather than a single national buy – would boost ad revenue by 10%. A date for the introduction of the new system has yet to be set.

Fairhurst also noted that the appetite for cross-platform deals had taken a hit, as time-pressured buyers looked for quicker, easier ways to buy media. This, he said, has played into the hands of the commercial broadcasters.

Fragmentation and a rise in inventory – which has tripled on SBS since the launch of SBS2 – has put advertising rates under pressure, he added. “We’re not dropping our pants. But we’re having to do a lot more trading on price.”