Can ITV Sustain Revenues With Rising Prices?

Advertising revenue figures for 1999 released by CIA Medialab show that year on year TV advertising revenue has grown by 5%, to nearly £3.6bn. Sky enjoyed the largest percentage increases, with Sky News rising from £20m of ad revenue in 1998 to nearly £29m last year, an increase of 40%. Sky Sports revenue increased by 11% to nearly £48m, but Sky One, the highest placed non-terrestrial channel in terms of ad-revenue saw barely any change year on year.

Channel 4 remains the top channel in ad revenue terms, increasing its total by 7% to £685m. Channel 5 saw monitored spend increase by 32%, its total of £216m being the 7th highest amongst all channels.

ITV saw increases in revenue across the network, notably Central and LWT, placed 2nd and 4th, which both put on 10%. However, ITV’s cost per thousand (CPT) is considerably higher than other channels’ and some within the industry are questioning whether its scheduling can justify the price.

A recent report by The Billett Consultancy is said to advise buyers to spread their budget thinly amongst the other channels rather than spend large amounts during high profile ITV spots such as football matches. CPT for April showed Channel 5 charging 494p, compared to ITV’s 954p. This month Channel 5 reported its second best audience share figure yet- 17% during a film screening (see

The Billett report is also said to suggest that nothing in ITV’s schedule would be expected to attract large increases in audience figures and the channel had a mixed response from the ITC in its annual performance review, released yesterday. Having said that, ITV, along with Channel 4, received praise from the ITC for their investments last year in new drama. This was also the genre which attracted the largest share of advertising expenditure – 31%- last year.

CIA MediaLab: 020 7803 2000