ISBA Suggests BBC Uses Spot Advertising To Increase Revenue

The BBC might need to begin carrying advertising in order to raise its revenue, according to a submission from the Incorporated Society of British Advertisers (ISBA) to the BBC Funding Review Panel today. It follows submissions from both ITV and the CRCA (see Newsline).

ISBA believes that in order to maintain the quality and diversity of its output, the BBC will need to bolster its current revenue. However, it believes that the broadcaster will face problems if it continues to rely on the licence fee as its principle source of revenue, and recommends that the BBC seek commercial forms of funding.

The advertising society put forward various options that such commercial funding could take, from the commercialisation of BBC Ceefax to programme sponsorship and spot advertising. ISBA forecasts that by commercialising its Ceefax, the BBC stands to raise £10 million in revenue per year. Introduction to programme sponsorship of BBC1 and 2 programmes is potentially predicted to raise £50 million, and commercialisation of BBC Radios 1 and 2 was forecast to contribute a further £25 million.

Bob Wootton, director of media and advertising affairs at ISBA commented: “Each candidate solution could be adopted individually, though we feel it equally likely that they might be exploited in some combination. Our proposal is more logical, evolutionary and positive than some industry commentators appear to expect from ISBA. We are attempting to provide a solution to the question raised by the Funding Review Panel – how can the BBC raise the funds it needs to maintain its programme quality and audience levels in an increasingly competitive market place.”

ISBA: 0171 499 7502 BBC: 0181 743 8000