ANALYSIS: Can BBC retune its brand?

The BBC has made its first move to build a marketing strategy, but what

will be the commercial effect on competitors?

The BBC is one of the strongest media brands in the world, with a

revenue of more than pounds 1.8bn. But in terms of marketing spend, the

broadcaster has until now spent virtually nothing on itself - believing

its programmes to be a powerful enough promotional tool.

However, the BBC has woken up to the fact that it can no longer rely on

this strategy. It is moving to strengthen its presence through focused

marketing for TV and radio, and through joint ventures to promote the

brand outside Europe.

Last week news broke that the BBC was seeking a marketing head for its

TV and radio interests, and had lined up its roster agencies to pitch

for its seven cable and satellite channels, which are set to launch next

year in a joint venture with Flextech TV.

Until recently, the BBC’s ad spend has been minimal. In the 12 months to

June, the BBC spent pounds 183,000 on corporate branding and pounds 1m

on trailers for programming (Register-MEAL). Spend has been higher on

radio, with a combined spend of just under pounds 4m (see box).

Jane Frost, head of corporate centre marketing for the BBC, insists

there will be no radical increase in ad budgets. ‘Marketing the BBC

brand is only two years old. We spent a year sorting out the brand

positioning before developing a communication plan.’

Frost says the appointment of a director of marketing and

communications for broadcast, press and publicity will help realise ‘the

value of the brand and ensure it is valued appropriately. A new TV and

radio head will sharpen our focus’.

The BBC’s new marketing focus is causing the advertising community some

discomfort. To survive, it can be argued that the BBC has to become

commercial in its outlook, but how far can it go before it oversteps the

line which has set it apart from commercial broadcasters?

Bob Wootton, director of media services for the Incorporated Society of

British Advertisers, says: ‘The BBC has shown long-term resilience in

holding on to about 45% of the UK viewing public. If the BBC decides to

behave commercially, you can imagine why other broadcast sectors are

worried.’

Two factors have prompted the BBC’s shake-up. It is increasing its

products, with its own independent plans for digital TV as well as BBC

Online, and it has a growing number of publishing interests.

The BBC is also having to pay out more money for quality programming,

particularly sport, as a result of competition from BSkyB.

The BBC is no stranger to commercial accountability but has experienced

growing pains. The new marketing head will have to balance building the

BBC brand and increasing its accountability to TV audiences, while not

antagonising the commercial broadcasting community with its new

competitive edge.

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BBC breakdown

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Brand            Agency                   Spend

BBC Corporate    Leagas Delaney           pounds 183,000

BBC TV           Leagas Delaney           pounds 1,000,000

Radio 1          St Luke’s                pounds 1,030,000

Radio 2          Arc Advertising          pounds 1,200,000

Radio 3          Saatchi & Saatchi        pounds 234,000

Radio 4          Ammirati Puris Lintas    pounds 938,000

Radio 5          Ammirati Puris Lintas    pounds 542,000

Source: 12 months to June 1996 - Register-MEAL

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This article was first published on Marketing