ITV Signs Deal With IMD For Advertising Delivery
The Board of Independent Media Distributions (IMD) has signed an agreement with ITV to use its digital advertising delivery service in the broadcaster’s London and Leeds transmission centres.
ITV, like BSkyB, has decided to receive its commercials through IMD’s system, allowing IMD to offer advertisers an almost full digital network, connecting it to the UK and Irish broadcasting system.
Negotiations for the deal have been underway for several months, with IMD concentrating on building systems in the broadcasting premises, as well as preparing for the large volumes of advertising that will be processed through the head office.
The total cost of the development and preparation for the higher amounts of advertising expected are estimated at around £700,000. IMD predicts it will generate substantial additional revenue from television as a direct result of this installation.
Assuming that radio industry advertising revenues continue to remain depressed in line with the first half of 2005, and that material revenues resulting from ITV do not commence until 2006, it is unlikely, however, that IDM will more than break even for the current financial year.
Earlier this summer, ITV had its annual fee payable to industry regulator, Ofcom, cut by £135 million to less than £80 million, as part of a review into licence fees by the watchdog taking into account the increasing growth of digital TV (see ITV Has Licence Fees Slashed).
The broadcaster paid £215 million for its 12 licences in 2004, astounding city analysts who predicted Ofcom to drop the fee to between £90-95 million (see ITV Set For Massive Licence Fee Cuts).
Last month, ITV Sales began taking bookings for interactive ad campaigns on the broadcaster’s newest digital channel, ITV3 (see ITV3 Celebrates Interactive Ads With Cut-Price Fees).
To celebrate the launch, ITV is promoting the channel’s interactive capabilities at both regional and national level with discounted application fees for all regional interactive campaigns on its family of digital channels, including ITV1, ITV2 and ITV3.
The move to allow interactive advertising on ITV3 is the latest step in ITV’s digital strategy, which will continue later this year with the launch of ITV4 – a male-focused offering, screening new US drama, top end British drama, comedy, movies, sport, Sci-Fi and factual programming.
ITV4 is expected to begin broadcasting on 1st November, complementing the programming of sister channels ITV1, 2 and 3, while appealing to a more male audience than ITV1, and a younger one than ITV3 (see ITV4 To Launch In November).
ITV: 020 7843 8000 www.itv.com