30 Sep 2010 | Liz Jaques

TV Market Round-Up: August 2010

Total television revenues were up across the board in August, with just one exception – Channel 5.

Channel 5, which is still in the early stages of Richard Desmond’s leadership, saw revenues fall over the summer month, although this may have been expected during the change-over period from the previous owner RTL.

After all, August was a period of uncertainty as the broadcaster changed hands and Desmond made some significantly changes, including cutting seven of the nine executive board directors in a bid to make savings of around £20 million.

Desmond will be looking to increase 5’s current share of TV ad revenues once his new structure is in place, although some analysts have suggested that he will struggle in the autumn trading season. He has yet to secure the rights for Big Brother from Endemol UK, which could prove to be a setback.

Meanwhile, Big Brother‘s grand departure from Channel 4 helped to boost ad revenues in August. The channel enjoyed a 17.7% increase during the holiday season.

“TV revenue in August was up 15% on 2009. As in July, we [PHD] have seen substantial increases in spend against Sky and BT as their battle for new subscriptions continues,” said Oliver Jones. “While not as massive as in July, Sky was up 74% year on year, with BT up 123%.

“Other big movers come from the food sector, with Cadbury Trebor Bassett and Kraft Foods up 154% and 335% respectively. The motors sector also saw substantial growth, with Mercedes Benz and Vauxhall spending well. Vauxhall spent around £2.7 million in August this year, up on their spend of £1 million in 2009; and Mercedes spent approximately £1.6 million, up and massive 1,266% on 2009.

“Once again, this means significant inflation in TV pricing in August. Indications are that this will continue across September and October, with interest growing as to which advertisers will show the biggest increases across the ever-busy Christmas months of November and December.”