ITV Set For Dip In Advertising Revenues

ITV’s advertising revenues could dip by almost 5% this year, with forecasts from media agency ZenithOptimedia painting a pessimistic picture for the broadcaster.

According to the agency’s latest forcasts ITV stands to lose 4.8% of its revenues year on year, pushing the broadcaster’s total down to £1.59 billion.

The downturn is predicted to continue into next year, with a further decline to £1.53 billion expected. The depressed market has led to ZenithOptimedia slashing its adspend growth forecasts to 1.5%, citing a downturn in high street shopping as the principal cause.

ITV’s outlook is not all doom and gloom, however, with 2006’s World Cup offering the potential for stimulated growth. ZenithOptimedia’s forecasts take this into account, but claim that without an upturn in the retail habits of British shoppers, this will create only moderate benefits for ITV.

Television spend is expected to grow by 4.3% year on year in 2006, and between 4% and 5% from 2007 to 2010.

Explaining the results, the company said: “This may seem implausible in the face of the threat to television advertising posed by personal video recorders, but this threat is counterbalanced by the boost to commercial viewing provided by the spread of digital television.”

Elsewhere ZenithOptimedia claims that Five’s audience share will not grow significantly, having reached a peak, and will plateau until the broadcaster expands through acquisitions or commercial partnerships with its rivals.

ZenithOptimedia: www.zenithoptimedia.com