A number of advertisers have pulled their ads from Channel 5 in a row between the broadcaster and media agency Carat over the cost of advertising on the channel, according to reports in Marketing yesterday. Nissan, Asda, Abbey National, News International, and Diageo were amongst the clients in the withdrawal, which is believed to be worth around £1 million a month.
The row involves Channel 5’s policy to link its advertisers investment to the station’s performance; as the channel increases its viewing share it is keen to narrow the price differences between itself and other channels. Thus it has demanded that Carat, the UK’s second largest media agency, increases its investment in the channel by up to 30% this year or face an ad rate increase of 5-10%.
Channel 5 was the only terrestrial channel to increase its viewing share last year (see Annual TV Viewing Round Up – 1999). In the latest figures it weekly viewing share was 5.3% of all TV viewing compared to 4.7% for the same period last year.
A spokesperson from Channel 5 said the problem was being investigated.
Channel 5: 020 7550 5555
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