IPA Welcomes Delay To Ownership Relaxation

It may not have pleased the ITV companies, but the news that changes to the rules on cross-media ownership will not reach Parliament this year (see Communications Bill On Hold This Year) has been welcomed by the advertising agencies’ trade body, the Institute of Practitioners in Advertising (IPA).

“If delay means that greater thought is to be given to critical matters like the implications of relaxing the current cross-media ownership rules then we must welcome it.” stated Jim Marshall, chairman of the IPA’s media policy group. “These are highly complex matters and to rush would be to risk upsetting the delicate balance of the entire structure of the advertiser-funded media.”

While the IPA is said to welcome the proposal to create the super-regulator, OFCOM, which is included in this year’s Communications Bill, it says it has held and expressed concern over what it terms the “wholesale removal of current constraints on ownership” before there is a clear idea for their replacement.

A relaxation of the rules is expected to lead to the creation of a single ITV. This would effectively eliminate the competitive market that has been preserved by the current rules, which could lead to higher rates for advertisers on the main commercial terrestrial channel.

“An open and competitive media market place is vital for agencies in ensuring that they are able to buy efficiently and effectively for their clients.” stated Marshall.

IPA: 020 7235 7020 www.ipa.co.uk

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