On the eve of the launch of Channel 5, the cost of advertising on
ITV continues to soar and is forcing advertisers to reconsider their TV
budgets and move spend away from the network.
In January, ITV price inflation ran to 10% for all adult audiences, and
25% for the 16- to 34-year-old male audiences (year-on-year). In
February the picture looked even worse, with ITV’s inflation at 15%
among adults and 30% in the 16- to 34-year-old male sector. The figures
are based on BARB/agency information.
The unabated rise in ITV’s advertising prices has led agencies such as
The Network to switch advertising revenue historically spent on ITV to
Channel 4 and cable and satellite stations to try to combat
Major ITV advertisers such as Guinness have changed their TV buying
Alan James, TV director for The Network, said he has upped Guinness’s
advertising revenue on Channel 4 and cable and satellite by 50%. Ford
has also increased its spend in these areas.
James said: ’It’s only now you can take other courses of action because
the ITV monopoly is broken. He added that ITV’s scedule should be more
user-friendly in the face of stranded programming from Channels 4 and
ITV’s scheduling on Saturday nights continued to be particularly weak,
Channel 4 has also suffered slight inflation in advertising costs for
the 16- to 34-year-old male group, but overall saw impacts rise for all
sectors in January, resulting in deflation. In February, prices remained
Earlier this month, Paul Polman, UK chief of Procter & Gamble warned
that television advertising inflation was hitting advertisers.
He said commercial television should increase the maximum amount of
advertising minutage available from seven minutes an hour to nine in
some key periods of the day.
This article was first published on Marketing