Grim up North? We love it, says ITV
ITV’s MediaCityUK offices in Salford, Manchester
As Channel 4 packs its bags and ventures out of the London bubble, ITV explains the benefits of expanding out into the regions
When the government announced that it wanted to move publicly-owned Channel 4 out of London, many people working in media and advertising were perplexed. What sense did it make to move a commercial broadcaster away from the heart of the advertising industry?
However, as Mediatel saw first hand when it ventured north for Future TV Advertising Manchester, there is a well-established, vibrant media and advertising scene growing rapidly outside of the capital .
After months of negotiation, Channel 4 agreed to a deal whereby it would relocate 300 of its 850 jobs into new, regional hubs, based in Leeds, Bristol and Glasgow. Some remain sceptical, but according to Channel 4’s main competitor, ITV, there is a lot to be gained from increased investment in the regions – so it’s a move Channel 4 is likely to benefit from.
ITV currently has offices in 43 UK towns and cities, linked to news teams, commercial teams and production hubs. Almost half of its UK employees are people working outside of the capital.
“Regionality is in our DNA going back to the very heart of how ITV began,” ITV’s business development director, Jason Spencer, told Mediatel. “It enables us to create programmes rooted in the life of the UK, set the news agenda locally and regionally, as well as support advertisers and agencies of all sizes right across the UK.”
With a network of more than 90 employees in 9 commercial sales teams across the UK’s main cities, Spencer said ITV is well placed to “not only superserve agencies and advertisers, but also to supercharge growth.” Those teams have delivered significant revenue growth, he added.
The number of agencies with regional offices has increased hugely, including networks such as Mediacom, Dentsu and Wavemaker, and independent agencies such as The Specialist Works, Running Total and Republic of Media.
Many important advertisers are also based outside of London. Online fashion giants Boohoo, Missguided and Pretty Little Thing are all based out of Manchester, Birmingham is home to sportswear brand Gymshark, and Cardiff houses offices for motor insurance company Admiral Group (the group behind Confused.com’s infamous TV ad).
“We work with over 1,100 local, regional and national advertisers across all our platforms. Having strong local teams enables us to work closely with brands as a business partner as well as a media partner,” Spencer said, echoing the commercial aims outlined by group commercial director Simon Daglish at the ITV Palooza earlier this year.
According to Spencer, helping new brands onto TV is fundamental to ITV’s success, as 60% of advertisers spend £50k or less advertising on ITV channels each year. Working directly from the regions has helped with that, with the broadcaster able to bring around 300 brands each year onto TV for the first time or after an absence of three years.
Regional programming
It’s unfair, perhaps, to directly compare the two commercial broadcasters on their presence in the regions. ITV employs more than 4,000 people, whereas Channel 4 employs 850; and whilst Channel 4 buys the vast majority of its programming from external companies, ITV owns a number of production companies, producing its own content as well as content for other companies.
But part of Channel 4’s commitment to support the regions is a pledge to increase its content spend in the nations and regions to 50% by 2023. Currently ITV’s own programming consists of 43% of hours and 37% of programming budget spent outside the capital.
Some of the broadcaster’s most viewed programmes are filmed and set outside of London: Coronation Street, Emmerdale, Judge Rinder, Jeremy Kyle and Ninja Warriors.
“ITV make over 1,500 hours – that’s 2 solid months – of programming out of the North alone, ranging from high end drama to quizzes to entertainment to soap to daytime,” said John Whiston, managing director of continuing drama at ITV. “All of it delivering top audiences in its respective genres.”
300 hours of programming are spent on Emmerdale and Coronation Street alone, and their success has granted ITV the opportunity to build visitor attractions based on the soaps – winning the company awards for tourism.
“ITV’s soaps are the bedrock of the ITV schedule and their success is driven by the fact that they are unashamedly regional while appealing to a national (and international) audience,” said Whiston. “Indeed, just as the soaps are integral to ITV, their Northern location is integral to the soaps.”