ISBA has made a formal submission to the ITC for a phased increase in terrestrial TV advertising minutage to an average of 9 minutes per hour, with a maximum of 12 minutes per hour. This would harmonise UK commercial terrestrial TV with satellite, cable and the European standard.
The submission has been made for two main reasons:
1 To address inflation in television air-time rates – UK terrestrial TV is subject to bouts of rapid price inflation several times the rate of general price increases as measured by the RPI. According to Zenith Media, the price of advertising on ITV rose by 11.9% and on Channel 4 by over 30% compared with a 6% increase in the RPI between 1993 and 1995.
2 Falling audiences – Since 1991, ITV has lost 5% of audience share against growing satellite and cable viewing and a stable BBC. Increasing advertiser demand for commercial airtime is faced by an increasing scarcity of large viewing audiences, this is a major contributing factor to a massive increase in costs of advertising airtime.
ISBA believes the current minutage restrictions on terrestrial broadcasters is unjustified because:
The hourly maxima is set at levels below those which satisfy the balance between the interests of viewers and advertisers.
It unfairly discriminates against terrestrial commercial broadcasters, because non-terrestrial broadcasters have a higher maxima.
It does not adequately comply with the ITC’s general duty to ensure fair and effective competition in TV.
ISBA feels that the current minutage restrictions on terrestrial TV is artificially constraining competition in the airtime market, and hampering ITV’s ability to remain a market leader providing an attractive service to audiences and advertisers.
However, some TV buyers are concerned that increasing ad minutage will lead to a rise in channel surfing and reduce the effectiveness of advertising.
ISBA: 0171 499 7502
