IPA Defends Sales Structure In DCMS Response
The IPA has told the Government that the structure of the sales industry is essential to maintaining an open and competitive marketplace for advertisers in the face of consolidation within the TV and radio industry.
In response to the DCMS’s consultation on media ownership, the IPA said that it will concentrate on sales structures within the media industry and will leave the business of actual ownership “to others”.
Commenting on the IPA’s stance, CEO of MediaVest and chairman of the IPA Media Policy Group, Jim Marshal, said: “The industry recognised that, while advertising is critically important to the funding of commercial media, it is unrealistic to expect ad revenues to drive the Government’s policy of protecting diversity, programme content and plurality of opinion. Rather than seeking to have the advertising tail wagging the public policy dog, we have decided to press for guarantees of competition of that area of the market which directly affects us in advertising sales.”
In the face of “probable ownership consolidation” within the media industry, the IPA suggests that there should be a minimum of four separate sales points in any single medium or seven across media.
Where media ownership would result in a broadcaster exceeding 25% of sales revenues within a single medium (or 15% across media) the IPA recommends that the relevant owner should be required to operate that percentage of sales above the 25%/15% limits through an independent sales company.
However, the IPA argues that if a current sales organisation already represents over 25% of sale revenues then it should not be made to become smaller, but should just be prevented from growing any larger.
The advertising body also recommends a minimum of two London ITV sales companies “until such a time as ITV falls to or below 25% of total TV advertising revenue” and suggests that a minimum of three commercial radio sales companies operate in each area of the UK. In terms of press, the IPA argues that a minimum of two regional newspapers should operate in key regions in the UK, except for those where one or none currently exist. Similarly it recommends the existence of at least two poster contractors in key UK cities.
A spokesman for the IPA said: “By petitioning the DCMS on the issue of ownership consolidation we are making the views of advertisers heard. Advertising is an innate part of the media industry and we aim to ensure and free and competitive market for buying airtime and space.”
The DCMS issued its consultation on media ownership document in November, which stated that the 20% rule which currently governs cross media ownership may remain and could be extended to cover all media markets (see Jowell Says Cross Media Rules May Remain).
IPA: 020 7235 7020 www.ipa.co.uk
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