Ofcom Scraps Plans For TV Advertising Review

Media regulator Ofcom has ditched plans for a wide-ranging review of the TV advertising market, claiming that the consolidation of Carlton and Granada last year has led to sufficient safeguards already being put into place to protect advertisers.

Referring to the complex Contract Rights Renewal (CRR) remedy put in place as a condition of the ITV merger, Ofcom chief executive Stephen Carter said: “The airtime sales market is complex, with multiple players. Our priority is to continue to monitor the CRR remedy and to work with the OFT in the event of any subsequent review.”

The regulator had planned to undertake a review of the advertising sales market as part of its Annual Plan for 2005/6, although preliminary analysis of the market revealed the case for a full review not being made.

The regulator outlined that, since no complaints regarding the current operation of the TV market had been received, and since there is no strong evidence of consumer detriment as a result of existing systems, no review should be held.

Ofcom also stated that it has received no calls from either the advertising or the broadcasting industries for a review, and the CRR process already has a “significant” effect on the market, further ruling out the need for a review of “limited value.”

Last month saw Richard Eyre, chairman of the Interactive Advertising Bureau (IAB) and former chief executive of ITV, calling for current ITV boss Charles Allen to be allowed to unpick the CRR agreement. Speaking at MediaTel Group’s Media Question Time, the broadcast heavyweight told his audience that the process is “not good” for the industry and should be removed before ITV is allowed to “dwindle” (see CRR “Not Good” For Ad Industry).

ITV: 020 7843 8000 www.itv.com Ofcom: 020 7981 3040 www.ofcom.org.uk