Advertisers Pessimistic About Channel 5

A new survey carried out by Carat Research among 81 advertisers shows that the advertising world does not see Channel 5 as a positive development. Half of advertisers do not believe that advertising competition from Channel 5 will significantly reduce advertising cost inflation and 90% believe that C5 will further split TV audiences without increasing total viewing.

In terms of the general increase in channel choice over half of advertisers believe that more channels chasing the same viewers is unlikely to reduce advertising cost inflation and a similar figure believe that the increase in new channels has not helped business. Three out of four also believe that digital TV will fail to increase audiences – audience fragmentation will simply continue. Interestingly, two out of three advertisers agree that “large audiences are less important to me than attentive audiences.”

Advertisers are also concerned that the ITV companies’ sales houses may be gaining too much control. Six out of ten advertisers agree that ITV sales practices are in need of stricter control.

More generally, over half agreed that the Channel 4 funding formula should be abolished and there was similar support for BBC Radio One and Two carrying advertising. Opinions were exactly split as to whether BBC1 and BBC2 should be open to advertisers, with 48% agreeing and 48% disagreeing.

70% agree that the non-availability of major sporting events on ITV is unacceptable: these programmes are an important means for advertisers to reach the crucial upmarket young men’s marketplace.

Carat Research: 0171 344 0070