ITV Ad Revenues Expected To Fall

ITV advertising revenues are expected to decline by as much as 13% in the last quarter, according to reports in the national press.

The broadcaster’s deadline for September advertising bookings passed yesterday, with agencies predicting that low marketing budgets would cause its ad revenue to fall in the autumn.

ITV has so far managed to keep on top of the worsening economic climate but September is said to be a critical month because it acts as an early indication of how advertisers will spend on promotions in the run up to Christmas.

A senior media buyer told The Times: “Companies are thinking about what is happening in the next few months – and it is obvious that there is general concern about the state of the economy.”

Britain’s most-watched commercial channel is set to air some of it’s most popular programmes in September, with shows like X-Factor returning to Saturday evening, as well as launching a series of new dramas, including a spin-off of High School Musical, Britannia High.

However, reports suggest that a strong schedule can only marginally help balance a weak economy – the broadcaster’s figures are likely to drop even with the rise of its digital portfolio’s ad revenue.

ITV’s share price has fallen by two-thirds due to an almost continuous decline in advertising since Michael Grade became chief executive at the start of last year.

It’s value started to deteriorate yesterday, as rumours started to spread in the city, with shares losing another 2.9p – down 6.8% – closing at 40.1p.

Channel 4 will also be affected as it works on the same booking timetable as ITV – even with the rise of its digital channels ad revenue and with popular shows like Big Brother running in to September, it still faces a similar decline in its overall figures.

ITV: 020 7843 8000 www.itv.com