ITVX Boosts Marketing Budget by £15 Million for 2024
ITVX streaming platform emphasizes increased marketing investment as a pivotal strategy for driving growth, resulting in a notable 25% surge in total views in the previous year.
ITV 2 MW Awards 2023
Broadcaster ITV is investing an additional £15m in marketing in 2024, describing it as a vital tool for attracting viewers to streaming platform ITVX.
ITVX experienced a 19% increase in monthly active users in 2023, along with a 26% rise in total streaming hours. This growth contributed to a 19% increase in digital revenues, reaching £490m.
Launched by ITV in late 2022, the streaming platform has been dedicated to building awareness, generating interest, and attracting viewers through its marketing efforts.
The broadcaster announced a significant increase in awareness of ITVX among light viewers and adults, attributing it to the success of their campaigns which led to a rise in monthly average users and streaming hours.
Looking ahead to the next year, the broadcaster plans to increase their marketing investment to further boost growth for ITVX. In 2023, ITVX saw a jump in viewership to 12.3 million from 10.5 million the previous year. The goal is to reach 20 million monthly active users on the streaming platform by 2026.
ITVX highlighted the significance of marketing in their annual results statement released today (7 March). They emphasized the importance of attracting users and viewers on both ITVX and their linear TV channels. The company expressed their intention to adopt a more "responsive" marketing approach to showcase popular programs to their most valuable audiences.
ITV is planning to enhance its data capabilities and expand the visibility of its content on external websites. Additionally, the company will be launching campaigns targeted towards engaging more 25-to-54 year-old light viewers, who are considered to be highly valuable to advertisers.
Furthermore, ITV has confirmed that it will maintain its focus on measuring and optimizing its marketing strategies in 2024, aligning with the increased investment.
Last year at this time, ITV had predicted a decrease in ad revenue for 2023 due to advertisers moving their budgets to digital platforms. As expected, linear ad revenues dropped by 15% while digital ad revenue saw a 21% increase.
In addition to the ad revenue trends, ITV Studios had a successful year. They produced hit shows like Mr Bates Vs The Post Office, ITV's biggest new drama in ten years, as well as Squid Game: The Challenge and Fool Me Once, both of which performed exceptionally well on Netflix.
ITV Studios generated £2.17bn in revenue in 2023, showing a 4% increase from the previous year. ITV CEO Carolyn McCall attributed this growth to the rise in production and streaming, which helped to counterbalance the tough conditions in the linear TV advertising market.
ITV's total revenue decreased by 2% to £3.63bn. The company's profit, or EBITDA, also dropped by 32% to £489m, influenced by the tough advertising market.
Editor's P/S:
ITV's decision to increase its marketing investment by £15 million in 2024 is a testament to the critical role marketing plays in driving growth for streaming platforms. The success of ITVX, with its notable increase in monthly active users and streaming hours, highlights the effectiveness of the broadcaster's marketing efforts in generating awareness and attracting viewers.
Looking ahead, ITV's plans to enhance its data capabilities and expand the visibility of its content on external websites are strategic moves that will further strengthen its marketing reach. By targeting valuable audiences, such as light viewers aged 25-54, and leveraging data-driven insights, ITV is well-positioned to continue growing its ITVX user base and drive overall revenue growth.
