Billetts: Lowest TV ad rates in over 20 years

Television advertising rates have fallen to the lowest levels since the 1980s, according to a new report by Billetts.

The media and marketing consultancy firm also warned that UK TV ad spend is unlikely to recover next year after two consecutive years of decline, following a slump in the cost of TV ad slots.

Billetts said the outlook for 2010 “shows little cause for optimism” as budgets will be set using deflated 2009 budgets as a benchmark, which will potentially delay any increase in ad spend.

The report also shows that TV prices are expected to fall by 16% year on year in 2009 due to “weak demand from advertisers and rising audiences”.

Billetts said that at approximately £4.16, the price of reaching 1000 adults with a TV ad is the lowest since the 1980s.

The report also predicts declines in the cost of advertising in other mediums – Billetts forecasts a 5% drop in national newspapers and a 9% fall in consumer magazines on average in 2009.

TV revenue from advertising is expected to be down 14% year on year to £475 million in 2009.

Rates have been hit by more sophisticated online options, as well as the global recession, according to the report.

Nick Manning, chief operating officer at Billetts’ owner Ebiquity, said: “Cost-wise, it’s a great time for advertisers with prices so low, but the severity of the downturn will have serious medium and long-term implications for media owners and agencies in the same way as it already has for some of their clients.”