ITV’s troubles will continue into 2003 and the channel faces a battle to convince advertisers to part with their cash, according to a report in the Independent On Sunday.
Carlton and Granada are currently negotiating with media-buying agencies to determine how much advertising spend they will receive next year. The two companies have witnessed revenues and viewing figures subside and reports over the weekend suggested that they are set to reveal combined full-year losses of £300 million (see
ITV Giants Set To Unveil £300m Exceptional Losses).
ITV has seen its market share slip to 55% as agencies have looked further afield in a bid to get value for money for their clients. The network is expected to experience further decline next year as Channel 5 and BSkyB get an increasing share of the pie.
Mediavest forecasts that ITV’s share of advertising will fall to 51% in 2003 although revenue will remain stable as a result of a 2.5% increase in overall ad spend. OMD UK is more optimistic, predicting that the television market will grow by 5% and ITV’s share will hold up at 53%.
The proposed Carlton-Granada merger is designed to ensure that ITV will remain competitive in the evolving broadcast market and the move now has the backing of the UK’s largest media buying agency Carat (see Carlton And Granada Merger Gets Agency Backing). However, industry bodies and commercial rivals have warned that a merged company could exert too much influence over customers and keep prices artificially high.
