The declining power ratio of ITV1 in the fragmenting television marketplace was once again evident during August. The UK’s largest commercial broadcaster experienced a 9.1% year on year decline in ad revenues as its market share continued to decline at the hands of its satellite rivals. Satellite revenues grew by almost 25% year on year during August.
However, both Channel Five and Channel 4 continued to build their ad revenues. Channel Five put in another strong performance, rising 7.6% year on year as it continues to strive towards a more up-market image. Channel 4 also performed well despite the distraction of the unseasonably hot British summer. The channel, which recently benefited from a flurry of press to support its new political drama The Deal, experienced a 2.5% year on year increase in ad revenues.
| Total Television Revenue – August 2003 | |||
| Total Revenue | Aug 02 | Aug 03 | % Change |
| ITV1 | 123,256,000 | 112,040,000 | -9.1 |
| C4 | 41,230,000 | 42,270,000 | 2.5 |
| Five | 17,333,000 | 18,650,000 | 7.6 |
| GMTV | 3,665,000 | 3,600,000 | -1.8 |
| Total Terrestrial (inc. GMTV) | 185,484,000 | 176,560,000 | -4.8 |
| Total Satellite | 33,433,000 | 41,770,000 | 24.9 |
| Source: Agency Estimates | |||
ITV Franchises
August brought a flurry of bad news for the ITV franchises, with Carlton experiencing a 0.49% drop and Central suffering an even sharper 0.52% year on year decline. However, LWT was one of only a few franchises that managed to escape the wider downturn with a 1.32% year on year increase in its overall share of ITV’s revenue.
| August ITV Franchise Revenue Share Comparison | |||
| Station | Aug 02 | Aug 03 | % Point Change |
| Scotland | 6.39 | 6.14 | -0.25 |
| Anglia TV | 7.39 | 7.21 | -0.18 |
| Carlton | 15.02 | 14.53 | -0.49 |
| LWT | 9.61 | 10.93 | 1.32 |
| Central | 16.92 | 16.40 | -0.52 |
| North West/Border | 10.67 | 11.09 | 0.42 |
| Meridian | 12.01 | 11.84 | -0.17 |
| West Country | 2.18 | 2.06 | -0.12 |
| Ulster (UTV) | 2.16 | 2.27 | 0.11 |
| HTV | 6.29 | 6.18 | -0.11 |
| Yorkshire/North East | 11.37 | 11.34 | -0.03 |
Costs Per Thousand
Costs Per Thousand declined across the board at both ITV and Channel Five during August, reflecting the weakened state of the television advertising market. ITV experienced its biggest decline in the Housewives category, which dipped by 11.6% year on year. However, Channel 4 experienced solid growth in costs per thousands across all categories. Its biggest increase was seen in the Housewives With Children and the ABC1 Adults category, which both rose by 10.2% year on year during August.
| CPTs | ||||||
| ITV1 | % Ch YoY | Channel 4 | % Ch YoY | Five | % Ch YoY | |
| Adults | 6.55 | -10.4 | 6.75 | 1.8 | 4.06 | -4.3 |
| Men | 16 | -10.1 | 14 | 2.4 | 10 | -1.5 |
| Women | 11 | -10.6 | 13 | 1.3 | 6.99 | -6.3 |
| Hwvs | 10 | -11.6 | 11 | 1.1 | 6.21 | -3.5 |
| Hwvs/Ch | 46 | -8.7 | 50 | 10.2 | 26 | -15.1 |
| ABC1 Adults | 46 | -8.7 | 50 | 10.2 | 26 | -15.1 |
Commercial Impacts
Satellite broadcasters saw commercial impacts leap up by 20.4% year on year in the ABC1 Adults category and by 18.4% year on year in the Men category. Elsewhere, commercial impacts inched up at ITV1, with the exception of the Housewives With Children category, which experienced a 0.5% year on year decline. Channel 4 also experienced slight growth in impacts across all categories, with the exception of Housewives With Children, which fell by 6.9% during August.
