TV ad revenues could drop by 20% this month

TV advertising revenues could be down by up to 20% year on year this month, according to media buying agency sources.

A 12% fall in TV ad revenue is one of the most optimistic forecasts, with a decline of up to 20% predicted by a number of media buyers, according to reports.

This forecast falls below the previous predictions for UK TV ad revenues in 2009, which range from being down by 6% to 10%, though the TV ad market is becoming increasingly hard to predict.

“At the moment there is an extremely short term market; at best we are seeing minus 10% or 12% and at worst minus 15% or even more. At the moment there is pretty widespread depression through most of the media,” a media buying executive said.

Reports also show that the cost of TV advertising is at its lowest for almost 20 years, however, TV viewing often increases during a recession, which means it could be good value for money for advertisers.

“TV advertising is phenomenal value. There is a feeling that TV is now cheap as chips and the medium is quite rightly getting some pretty good PR from great viewing figures,” the media buying executive added.

ZenithOptimedia recently forecast that the TV ad market could actually benefit as economic conditions in 2010 and 2011 start to improve.

Zenith said agencies “secondary” media spend should be refocused on TV, as it has a proven ability to build brands and hit mass audiences.

ZenithOptimedia: www.zenithoptimedia.com