ITV Facing Heat From Advertisers As OFT Deadline Looms

ITV is under pressure from big brand advertisers threatening to withhold their ad spend as the proposed merger between Carlton and Granada edges nearer.

According to the Media Guardian, Colgate-Palmolive has warned it may pull all its advertising from ITV in protest at the high prices, which many advertisers believe will be exacerbated by a merger.

Media analysts believe that Colgate-Palmolive spends almost £6 million a year on advertising and could present a substantial blow to the network.

Big brand advertisers, rival broadcasters and professional bodies have criticised plans for Carlton and Granada to merge (see NewsLine). The main sticking point is the potential commercial dominance if their TV ad sales houses were to become one (see ISBA Voices Concern Over Stealth ITV Merger).

Despite the vociferous opposition, Michael Green, chairman of Carlton, recently claimed the merger could be completed as early as next June if it does not get referred to the competition commission (see ISBA Renews Opposition To Sales House Merger).

Tomorrow is the deadline for comments on the proposed merger to the OFT, which has confirmed it will pass the matter to the Department Of Trade and Industry in the next few weeks.

Carlton: 020 7663 6363 www.carlton.com

Granada: 020 7620 1620 www.granadamedia.com

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