STV is set to have its highest advertising revenues on record this year, following parent group ITV’s recent forecast this 2021 would be record year.
STV Group reported Total Advertising Revenue (TAR) is predicted to be up by between 22% and 24% for the year ending 31 December in its trading update today.
Meanwhile regional advertising was expected to be up 20% for 2021. This dropped by 5% during 2020 at the height of the pandemic and marked a 15% increase from pre-pandemic levels in 2019.
STV has forecast video-on-demand advertising on STV Player will increase by 35%-40% for the full year, which is more than 50% ahead of two years ago.
These predictions could have implications for higher than the +12% previously forecast advertising revenues across ITV. Media analyst Ian Whittaker noted that despite the differences between VOD, regional and channel size, STV’s results could mean ITV is going to have “the biggest month in Q4″, if not close to the biggest month ever.
Q4 advertising is expected to deliver TAR growth of +13-15%, with regional advertising up a further 15-20% and VOD up around 10%.
October TAR was +15%, November +20% and December is expected to be up 5-10%.
STV TAR was up by 28% over the last nine months and in Q3 this was +22% while regional advertising was up 13% in Q3 and VOD advertising was +44%.
STV has also announced it will increase its Growth Fund from £20m to £30m in 2022 to attract new SME advertisers to televisions.
STV previously allocated £15.7m across 700+ deals with small and medium Scottish enterprises since its launch in 2018 attracting over 300 new advertisers to television.
The trading update also said STV Studios is confirmed to be on track for a full year revenue of £20- £25m, its best ever financial performance.
STV chief executive Simon Pitts said: “The speed and scale of the advertising recovery in 2021 has far exceeded our expectations and underlines the enduring power and relevance of high-quality video advertising.
“2021 will deliver STV’s highest ever advertising revenues, with brands choosing broadcast and video on demand advertising to boost their post-Covid recovery due to its unrivalled levels of trust, brand safety and value.”
