What you need to know:

• SBS played up consistency versus rival networks undergoing significant structural and strategic overhauls at its Upfront.
• Buyers agree the network consistently delivers incremental reach and audience diversity they can’t get elsewhere, and that playing both sides of the OzTam-Video Futures Collective is a smart move.
• SBS execs likewise underlined the fact that a big chunk of its audiences tend to skew a little older, and a little less financially squeezed.
• Alongside hitting audiences others find hard to reach, that should be a reason to take a larger ad take. Whether buyers will change their pursuit of youth and standard demo approach remains to be seen.
• One interesting nugget: SBS audiences haven’t opted out of ads for fast food, booze and gambling en masse despite having the ability to do so since January.

“We're premium, we're diverse, we're sustainable, and we're leaders in digital with very much an audience-first mindset.”

It was a comfortingly consistent message from SBS’s chief marketing and commercial officer, Jane Palfreyman to advertisers at this year’s Upfronts in a world where broadcasters, streaming services, news media publishers and radio station owners are all attempting to reinvent what it means to be in TV, publishing, or radio – and how they even measure it.

Most of what was presented at 2024 SBS Upfronts was a doubling down on what SBS stands for and what it’s trying to push for as the national part-public, part-commercial broadcaster leans into its 50^th anniversary in 2025. From the same choice of venue (Sydney Town Hall) to a chunk of next year’s content slate (Alone Australia for a third season, more FIFA, more Tour De France, more Who Do You Think You Are, more The Handmaid’s Tale and more Marc Fennell) to the same CMO and Managing director standing up to speak as last year, SBS re-emphasised many distinctive brand attributes as well as the authenticity the market expects from the most multiculturally oriented broadcaster in the mix.

There’s even a milestone birthday to hinge a new brand campaign on next year, reflecting SBS’s heritage, diversity and provocative nature, while reminding people of its continued place in the rapidly changing Australian media landscape.

“We know Australians affectionately think that SBS stands for ‘sex before soccer’. We’re okay with that. It’s reflective of the fact we’re the most distinctive, authentic media brand,” Palfreyman told attendees. “We have not been afraid to push the envelope, be provocative, to challenge the status quo – be that in how we show up for audiences or for our partners. We go where other channels don’t, or won’t. We always have.”

Distinctive reach and audience

Take the attempt to shift thinking about SBS’s competitive set, using its distinctive reach and audience to challenge the story.

SBS national sales manager, Keiran Beasley, quoted OzTam data showing seven in 10 of SBS’s main channel viewers on a daily basis aren’t watching broadcast TV alternatives – Seven, Nine, Ten – nor are they to be found on Foxtel. Figures cited show 73 per cent of SBS’s main channel audience on an average day isn’t watching 7, nor is 59 per cent of its On Demand audience over a month-long period. This number increases to 92 per cent compared with Foxtel in terms of average daily viewer (89 per cent for on-demand audiences), and 87 per cent against Paramount / Ten audiences on a daily basis (68 per cent for on-demand).

Beasley went further, highlighting 35 per cent of SBS’s On Demand audience over 25 years of age didn’t watch Netflix, 62 per cent didn’t watch Prime Video, 81 per cent aren’t on Binge and 90 per cent don’t watch Foxtel Now.  

It’s for these reasons SBS attributes its decision to support both OzTam’s VOZ Total TV measurement, and the Video Futures Collective alternative currency spearheaded by Foxtel Media and its CEO, Mark Frain, due out the end of this year.

“We’ve been talking for some time about our competitive set and yes these companies [Seven, Nine, Ten] we compete against on a day-to-day perspective,” said Palfreyman. “But more and more, we’re competing with these companies [Netflix, Disney+, Prime Video] as well. We feel well placed in this new premium video economy to compete.

“What also sets us apart is how we show up for clients and partners, and being in both OzTam and Video Futures Collective demonstrates this. And it demonstrates our belief we need to show up where our partners need us to. No other network does this. We sit in this beautiful intersection of public and commercial media and we can drive great outcomes for both.”

According to its 2024 annual report, recently released, SBS is touting an active monthly viewer figure of 13.2m across linear and digital (a dip on the 13.9m reported last year), with active users on SBS On Demand sitting at 1.6m in terms of video and 1.8 million monthly active accounts (across 13 million total digital registrations). More than 140 million hours of content were consumed on SBS On Demand last year, available in 60 languages, and 27,000 hours of new content was added through 2023-2024, 39 per cent in a language other than English.

SBS MD James Taylor claimed SBS stands alone with its long history of truly representing Australia. As SBS asserted, more than half of Australia’s population today fits the classification of multicultural, and 5.6 million speak a language other than English. Culturally and linguistically diverse audiences make up 70 per cent of SBS’s audience, against 59.9 per cent of the wider TV industry according to The Everyone Project.

“We authentically represent the Australia we all know exists, but the media has been slow to acknowledge,” Taylor said. “Multiculturalism has moved from the fringes of the Australian experience to the very centre of it… We’re a platform that knows who it is, but more importantly, knows who Australia is.”

A number of well-known brands such as AGL, Woolworths, Coles and Western Union were referenced as clients of SBS’s CultureConnect services at Upfronts, although the language of the presentation was as much about encouraging others to get on board as it was recognising those who have stepped up to the plate so far.

OMG Australia chief investment officer, Kristiaan Kroon said while it was smaller than last week’s Nine bonanza, SBS was no less impressive and certainly confident.

“The strength of culture for the business and their content was really high, which is what they are known for. Overall, it was very high quality,” he said. “No one would have left that room not considering how to spend more with SBS or NITV, which I wouldn't normally say.”

Kroon and Omnicom are big proponents around Australia's growth as a country coming from diverse audiences and groups and he’s firmly of the view engaging diverse audiences is a driver of growth. SBS’s play on differentiated reach and incrementality therefore resonated with the investment leader.

“Where SBS fits is absolutely talking to a client about quality over just quantity. We have an enormous oversupply of advertising inventory in Australia, I think there's an awful lot of poor-quality inventory, and SBS has very much positioned itself around quality and growth. For an advertiser, it’s the brand suitability and connection people want. I think they've done very well in that respect and we're a big believer on it,” Kroon continued. “We have a very large team that is built around providing those services and additional support to clients to get them on that journey.”

First Nations programming and creative support is equally a significant part of SBS’s offering through NITV. The broadcaster revealed a further $1 million investment is being put into NITV after seeing 27 per cent audience growth to 3.3 million Australian viewers through linear TV monthly. NITV is also debuting as a dedicated destination on SBS On Demand.

In addition, SBS is extending its Beyond 3% initiative with a new Indigenous Advisory offering to help brands with Reconciliation Action Plans, culturally authentic marketing and social responsibility programs. With under 0.6 per cent of all advertising spend invested in media going into First Nations creators or content yet 3.3 per cent of the Australian population identifying as Aboriginal or Torres Strait Islander, there’s still a gap SBS hopes to narrow.

Programming play

On the programming front, SBS Upfronts 2024 placed continued emphasis on key pillars of sport, news, documentary and diversity in drama and reality programming. A number of existing programs, including Alone Australia and Who Do You Think You Are, are back for another year, complemented by a new First Nations and Australian documentary titles featuring notable hosts such as Rachel Griffiths, Jacki Weaver and Melissa Leong.

SBS is digging deeper into its longstanding relationship with football, opening up a new FIFA+ Fast channel on SBS On Demand, supported by advertising, to include new and archived content around the beautiful game. SBS has been a partner with FIFA for over nearly 40 years and first broadcast the FIFA World Cup in 1986.

It’s also gearing up for FIFA 2026, and used the Upfronts to launch ad packages across the total tournament offering. During the FIFA World Cup In 2022, 52 million hours were consumed on linear TV and another 28 million on digital, representing 9 million linear and 4.5 million digital viewers, respectively. For 2026, SBS said all 39 days are going to be covered across its platforms, with all 104 matches streamed line and 556 hours of content across SBS and SBS Viceland planned. There’s also a Road to FIFA World Cup 2026 Hub on SBS On Demand.

The multicultural and diversity messaging and choice of programming is resonating, if buyers and agencies Mi3 spoke to are any guide.

“I think SBS is doubling down on its heritage and key areas that have been successful as a business over the last decade,” Avenue C managing partner for media, Daniel Cutrone, told Mi3. “Look at the sporting heritage, football, cycling – it has been that way for as long as I can remember, and they're just continuing that focus in areas that are successful. I think they've done a really interesting job, which I think is quite uniquely SBS as well, in that they're talking about the authentic Australia. That really stands out for me – I don’t think many other players are playing in that space.

Kroon noted SBS made “content the hero in a way that was relevant and thoughtful to advertisers”, noting a subtlety but clear reference to sector categories across sport, food networks and drama. The depth of sport content also got a nod, from football to the Tour de France.

“SBS has really built out sport while the other networks have fought over the main games, if you like,” he commented. “It would have been easy to just walk away from sport years ago. So the way they have it was interesting.”

Premium, hard-to-reach, older demos

While plenty of confidence was exuded in SBS’s position and unique offering on stage, there was a nod to the challenges of capturing media budgets in an industry where $600 million in ad spend has been diverted out of TV advertising and into the platforms in the last two years.

Over a 12-month period, excluding the 2023 FIFA World Cup peaks from year-on-year comparisons, SBS reported commercial activities maintained their premium position in the free-to-air advertising market and delivered television advertising revenue growth while also increasing digital revenue. However, service delivery including advertising revenue was down year-on-year from the record $171m (attained in a World Cup year) to $145.8 million, according to SBS’s annual report.

A new edition of SBS’s ‘Premium Effect’ research on the incremental impact for advertisers with fairly low-scale investment issued a clear efficiency message to market. By allocating 10 per cent of linear TV budgets and 27 per cent of BVOD budgets to SBS, the research found campaign costs savings of 19 per cent and 18 per cent, respectively.

“At a time of transformation in the TV landscape, SBS remains an essential part of any TV and BVOD schedule,” claimed Beasley.

Which was also why Avenue C's Cutrone was supportive of the decision to embrace both VOZ and Video Futures Collective. “If they were to have stepped out of OzTam VOZ, they’d completely remove themselves from the television landscape from the buyers’ eyes. Whereas by staying in both camps, I feel SBS can get the benefits of the streaming platforms, as well as take advantage of the television landscape and play both conversations to marketers," he said. 

“From everything SBS is doing, they are a digital-first business, yet they still offer incrementality you cannot get elsewhere on television. If you were to go to any of the streaming platforms today and ask them, would you like to be on the VOZ system, I'm sure almost all of them would jump at the opportunity for incrementality television budget. For SBS to walk away from that is a bit too much of a risk.”

Kroon is also a backer of SBS’s decision to adopt both measurement currencies, and has been quoted previously suggesting other TV networks would do well to follow SBS’s strategy.

“The customers, from an advertising perspective, are working with both and using both. Going where the customer is with a clear strategy should be applauded, and the other larger networks, in my opinion, would do well to follow that.”

Less convincing for some was the story delivered on demographics. Beasley threw out a challenge to buyers to get beyond their obsession with 25-54-year-olds and start following the money. He pointed to independent data from CommBank showing it’s consumers 40 years or over who have more spend in the challenging economic environment, while younger demos are going backwards.

Given buyers are – reportedly – using more datasets, segmentation and going beyond demos with other networks, the question Mi3 asked was whether SBS advertisers were behind the curve in sticking to a 25-54 demographic in the first place.

“The majority are still overlaying demo with a lot of the briefs that we receive,” Beasley responded. “But from a targeting perspective, we are certainly working with a lot of those brands, particularly from a digital space around either behavioural or specific, different kind of interest groups. We’re also using our capabilities with data partners. We have just brought on Flybuys and Coles 360 to complement Experian and Smarter.

“The other thing we're seeing an increase in is the use of our digital ad products to really enhance what they're doing across the SBS On Demand platform. Whether it be priority position takeover or pause ads, which now include QR codes and the ability to really dial up the commerce and performance side of our product offering, we're seeing an increase in interest from brands in those places as well.”

Cutrone saw the older demographic positioning as a challenging sell. “I feel like as a television network, they've almost conceded on sub-35 and they now are looking at their age profile, which actually resonates. There's a story behind it they can tell the market, which is that does work, and they do spend, they do have a higher disposable income, and they're not as impacted as the general population, whether they've paid off their home or they've got money in the bank,” he commented. “But that is still a challenge, and every marketer wants to tackle sub-30s audiences as they come across them.”

Enigma general manager of media, Amy Dascanio, however was more supportive of the older play overall.

"Their message was clear and succinct around their ability to deliver a premium and impactful advertising environments and the focus on the 35-64 audience segment—framing it as the 'new 25-54' is a clever reflection of shifting demographic engagement with strong spending power," she said.

Pushing the envelope

Where SBS is arguably now forging further ahead is on sustainability – a move one buyer at the event described to Mi3 as “admirably altruistic”, if not a couple of years ahead of where the market is ready to act.

Having set the target to be net zero by 2045, switched to 100 per cent renewable energy and become one of the inaugural Ad Net Zero members in Australia, SBS is now extending its Scope 3 emissions reporting to cover all direct campaign data emissions to get a better view of the digital advertising footprint.

SBS is also launching the Media Sustainability Challenge in February to encourage more brands to get on-board and normalise sustainable behaviour, offering $500,000 in advertising for the most impactful creative highlighting better environmental practices for consumers.  

There were other heralded firsts. From a platform perspective, the tentpole announcement was the integration of all seven SBS radio channels – covering 60 languages and both SBS Radio brands plus SBS South Asian, SBS Arabic and SBS PopAsia – into SBS On Demand. It comes a year after SBS Chill became the first audio offering to be available 24/7 through the on-demand services, a decision that’s proven a boon, according to Beasley, with 452,000 hours already consumed this way. In line with its quest to be more digitally progressive than its peers, SBS stressed it’s the first national broadcaster to have video and live audio propositions in one platform.

While it wasn’t discussed much at this Upfronts, SBS did note last year’s announcement to offer audiences the ability to opt-out of advertising across three categories: Gambling, alcohol and fast food. There's not been a huge take-up, though over 1,000 people have opted out of one category since the pilot kicked off in January, skewed predominantly to wagering, which the broadcaster said it sees as a success and that “self-regulation works”.

What the market thinks

Overall, Cutrone said SBS presented a strong front. “They are a really safe pair of hands to invest in, yet also providing purposeful media solutions for advertisers. Backing and supporting football and presenting that as the 2025-2026 option is good for advertisers,” he said. “It was a similar approach from last year, staying the course, and repeating those same narratives that hopefully the market can start to adopt.”

Dascanio was also a thumbs up. "Initiatives from Beyond 3%, and new partnership with Scope 3 and commitment to Sustainability and Reconciliation, enable SBS to uphold its reputation as a broadcaster that can resonate with the diversity and complexity of real Australia," she added.

"SBS’s combination of fresh and new content, including The Idea of Australia, Great Australian Road Trips, The Secret DNA of Us, and 2.6 Seconds, does bring a renewed perspective to the reality and drama space, distinguishing SBS in a content-rich environment. Whilst their returning content, such as Insight, Who Do You Think You Are?, and the final season of The Handmaid's Tale, offers a solid foundation for continued audience engagement across their platforms."

Kroon labelled SBS’s strategy the right one for a business that has linear and digital streaming assets and has gone from niche provider to scaled digital provider of audiences.

“That changes their ability to help brands impact sales, which is fantastic in terms of competition or having a foot in both camps,” he said.

“SBS has built more conversation every single year for the last five years. This was another strong evolution of their proposition, whereas others are facing far great headwinds… SBS is a really strong, differentiated product, and I love the fact they're playing in both camps. I love the strength of culture, particularly in this marketplace where we are now, and giving clients opportunities to really tap into diverse cultural groups driving growth is a great opportunity.”