2% Of TV Ad Revenues ‘Disappear’ From The Market Because Of CRR

A new report from GroupM says that as little as 2% of TV advertising revenues ‘disappear’ from the market because of the Contract Rights Renewal (CRR) mechanism.

The report is the first time that an estimate has been made for the amount of money lost under CRR.

According to the report, the majority of the money which is lost by ITV1 under CRR comes back into the television market, although it estimates that between 1% and 2% could be disappearing.

The GroupM report also estimates net TV advertising revenues to be worth £3,431 million in 2007, up from £3,404 million in 2006.

GroupM added that even though the figures are small, it does not expect CRR to be abolished in the near future, despite protests by ITV.

GroupM said: “By the end of the 2008, ITV1’s share of advertising revenues could be around a third and CRR might simply die on the vine, or be replaced by some as-yet unconceived alternative. Until then, we do not expect some magical consensus to arise”.

GroupM: www.groupm.com/