Magazine article Marketing

Sales Houses Seek to Boost Adspend on ITV2

Magazine article Marketing

Sales Houses Seek to Boost Adspend on ITV2

Article excerpt

ITV sales houses have sought a share of advertisers' total TV spend for ITV2 for the first time, as they seek to stem money flowing away from ITV.

The move is part of what is being described as a 'bloody' negotiation round for ITV, as the annual TV discussions near their close.

Agency sources suggest the share of advertisers' TV spend going into ITV this year has dropped by as much as 3% from its 2002 level of around 54%. Investment in TV follows audience performance and ITV is suffering from a poor start to 2002, partly caused by problems with the Barb panel.

Also, the growth in digital channels and Five's good performance mean these are in a strong position to demand a greater share of ad money.

ITV's standard response to advertisers and agencies that take money away from the channel is to reduce the discount they enjoy. But this year agencies and advertisers stand to lose less of their discount if they commit to spending between 0.7% and 1% of their total TV spend on ITV2.

The figure represents a significant increase in the amount advertisers and agencies have traditionally spent on ITV2. Until now advertising on ITV2 has been largely bought on informal arrangements, with agencies spending a certain volume of money rather than a share of total spend. …

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