Feature: OMD Sees Television Advertising On The Up

After a difficult period in 2001 when revenues slipped almost 10%, the television market has fared better this year and the sector will experience steady growth over the next five years, according to OMD UK.

The agency noted that TV’s share of advertising expenditure increased throughout the 1990s as the medium was seen as the most efficient means of targeting specific audiences. However, rising costs and the growing attraction of multimedia campaigns has led to spending falls in recent years. Advertisers are now being lured back to TV and with interactive television poised to rejuvenate the market, it is forecasted that expenditure will top £3.5 billion by 2005.

The Challenge To ITV

In 2001, commercial TV accounted for 62% of all television viewing and OMD anticipates that the BBC’s share will be further eroded as more consumers switch to digital. However, ITV has not gained from the changing habits of viewers and faces a tough task to hold onto its existing audience.

Ten years ago, ITV commanded three-quarters of all television advertising revenue. The success of BSkyB and the growth in the number of multi-channel homes has led to its share falling below 60%. OMD predicts that this decline will continue through 2002/03 with Channel 5 and the satellite stations being the major beneficiaries.

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