Commercial broadcaster ITV has announced a review of its £10 million media business, resulting in advertising agency Starcom Motive resigning the account after working on it for ten years.
Jim Marshall, chairman of Starcom Group UK said: “It’s been a long relationship, which has its ups and downs with management and ownership changes. Most recently, the relationship has been a bit fraught with the trading aspect. We can’t let a tiny part of our business impact upon the rest of our clients.”
ITV’s new marketing director, Clare Salmon, is reported to have told Starcom that the account was up for review, just three months into her new role. The start of 2004 saw ITV and Starcom in dispute over the value of the Cadbury sponsorship of flagship programme Coronation Street. Although this was resolved it is understood that Starcom still felt uncomfortable over the conflict of interests.
Recently ITV has seen its advertising revenues steadily diminish, with its 2004 budget at only £4 million compared to the BBC’s £12 million, Channel 4’s £5 million and Five’s £4.5 million. However, ITV is predicted to double its advertising budget under Salmon.
Starcom Motive would not comment on the loss of the account, but said that the deal was “perfectly amicable.”
ITV: 020 7843 8000 www.itv.com Starcom Motive: 020 7453 4444: www.starcommotive.com
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