TV Advertising Limit Raised

The ITC has announced its policy regarding television advertising sales arrangements. It has decided that sales houses will be allowed to sell airtime for TV companies up to a limit of 25 per cent of UK television advertising revenue, rather than 25% of ITV revenue. This follows the line set by the Office of Fair Trading.

The ITC will however agree to this 25% market share being exceeded to a “limited degree if it judges that the best interests of smaller television licensees require this and that the effect would not be prejudicial to fair and effective competition in the television advertising sales market.”

Other restrictions which previously applied, such as the joint selling of the two London Channel 3 services by the same sales house, will still apply.

The degree of flexibility in relation to the 25% ruling, as well as the future sales of Channel 5 need further consideration by the ITC before any firm ruling is made. The ITC is seeking representations on the outstanding issues”as a matter of urgency”.

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