Feature: Losses And Gains In TV

The completion date for TV’s “digital revolution” may remain unclear, but the democracy that a multi-channel world brings is already in evidence in TV viewing patterns. The audience has not changed much in size, but the traditional strongholds of ITV and BBC1 have seen their share drift downwards in recent years, with the main beneficiaries being the newer, especially non-terrestrial channels.

The Institute of Practitioners in Advertising’s (IPA) Q2 “Trends in Television” report in fact reveals that “overall viewing has been growing slowly since 1997”. This period of growth also saw an evolvement in pulling power; as the major terrestrials lost share, “Other” (satellite, cable and digital) channels have, according to the IPA, increased their share of total commercial viewing from just above 20% to just under 30% since 1997. In terms of total TV viewing, Other channels now command close to a 20% share, compared to just over 12% four years ago.

ITV’s increasing difficulties in delivering audiences and attracting ad revenue are well documented – the IPA’s report adds that ITV’s share of peak time audience for the quarter is the lowest for the past three and a half years, at 34.8%. This trend looks set to continue and ITV’s days of 40%-plus peak time share are almost certainly over.

For advertisers this could mean more competition driving down the cost of advertising. Channel 5, which has increased its share of viewing from an average 3.1% at launch in 1997, to 5.6% so far this year, nevertheless retains a markedly lower cost per thousand (CPT) than ITV – in June ABC1 Adults cost 1,369p on C5, compared to 2,006p on ITV (BARB/Agency estimates).

The changes could also mean the end of large-scale “appointment-to-view” programmes. Four years ago Coronation Street could expect to produce an audience around the 14m mark for a normal episode. Today it is more likely to be around 12m. As new technology such as Sky Digital’s Personal Planner and Tivo emerge it becomes less likely that audiences are tied to traditional scheduling, and advertisers are unlikely to achieve the same mass impact that advertising on terrestrial TV once guaranteed.

The upside to the diversification of viewing may be the ability to target more specific groups of viewers. Already channels such as UK Style and Discovery tap into specific interests rather than taking the broad approach, while interactivity promises the chance for advertisers to communicate even more personally with consumers.