• I have been following the ad sector for 7+ years and what I’m noticing recently is a rapid uptake of sales across BVOD and Linear TV ad inventory. • Across the media buyer channels the public dialog I am seeing repeatedly is one of buyers reallocating ad spend from short term performance marketing (think digital search, facebook ads etc) to brand building campaigns through Linear TV and particularly BVOD. • This is starting to be seen in the end product with BVOD ad loads starting to revert to greater than 6 mins per hour on 7plus and 9now. There is now clear evidence that SWMs new digital sales team is successfully closing the gap between 7plus audience growth and 7plus revenue growth. • This noticed upgrade of momentum is occurring even without the circa $59m of sector wide expected election ad spend having started yet. Expectations are that the Albanese government will hold a May Election and therefore election ad spend will kick off big time before Easter. • Based on current trends in the ad market - SWM Q4 is already tracking way above its prior guidance of low single digit growth for Q3. • SWM is now without a doubt sitting on an earnings upgrade that will likely feature at the Macquarie Conference in Early May (or in a market announcement if SWM doesn’t go to the conference this year). From memory the Macquarie Conference is usually on the 6-8th May.
SWM Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)