ITV’s Share Of Advertising Revenue In Decline
ITV’s share of advertising revenue is falling year on year, according to the Independent Television Commission’s (ITC) review of the last five years of commercial television revenue. Total net TV ad revenue was £2.8 billion in 1998, having increased 39% since 1994.
Although ITV still has the majority share of the advertising market, cornering a 63% slice last year worth £1.8 billion, its share has dropped from 76% in 1994. Channel 4 draws 19% of ad revenue in the commercial TV market, and its portion has remained fairly stable over the last five years.
| Net Advertising Revenue Share (%) | |||||
| 1994 | 1995 | 1996 | 1997 | 1998 | |
| ITV | 76 | 74 | 71 | 67 | 63 |
| Channel 4 | 18 | 19 | 20 | 19 | 19 |
| S4C | <0 | <0 | <0 | <0 | <0 |
| Cable & Satellite | 6 | 6 | 8 | 11 | 13 |
| Channel 5 | na | na | na | 2 | 5 |
| Source: ITC | |||||
It is the growth of cable and satellite and the arrival of Channel 5 in March 1997 that have pulled adspend away from ITV.
Cable and satellite’s share of TV revenue has grown from 6% in 1994 to 13% in 1998, and by 1998 Channel 5 had claimed a 5% slice of the cake, worth £128 million. ITV’s share fell most dramatically between 1996 and 1998, which is when both cable and satellite and Channel 5 gained most of their ground.
ITV’s decrease in ad revenue share looks set to continue. The further growth of multi-channel TV, precipitated by the emergence of digital television, points to an increase in revenue for the pay-TV channel providers. Channel 5’s ever-growing viewing share, which was 4.7% in February 1999, is also likely to drive its share of revenue up in the coming years.
Subscription income, sponsorship and the sale of goods are also included in the ITC’s calculation of total revenue. Last year, 84% of BSkyB’s turnover was derived from subscription income and just 14% from advertising.
ITC: 0171 255 3000