UK TV advertising forecast to grow 4.6%
The UK television advertising market is expected to grow 4.6% this year, according to a new forecast from Screen Digest.
The UK advertising bounces back report predicts 7% growth in the first half of the year, although it adds that “advertising scheduled around the football World Cup in June, marketing strategies placing an emphasis on the first six months of 2010 and tougher year on year comparisons with the second half of 2009, mean that across the year the growth figure will be 4.6%”.
ZenithOptimedia released its latest UK and global adspend forecasts yesterday, predicting 6% growth in the UK TV advertising market this year.
Screen Digest says that all the major TV broadcasters will end 2010 with significant increases in TV ad revenue after “an admittedly terrible 2009”:
- ITV up 4.6% from £1.3 billion to £1.4 billion
- Channel up 4.8% from £706 million to £740 million
- Five up 4.2% to £251 million
- BSkyB up 4.7% to £295 million
This contrasts starkly with 2009, when ITV’s revenues fell 9% year on year, Channel 4 10.5%, Five 23% and BSkyB 8%.
However, despite the challenges facing broadcasters last year, ad revenues were up at digital channels ITV 2, 3, 4 and CITV as was sponsorship on ITV1’s programmes.
ITV.com witnessed a particular strong surge with revenues up 33% to £24 million, primarily due to growing demand for advertising slots in online video, said Screen Digest.
ITV1’s audience was also very good compared to Channel Four and Five, both of which faced difficulties. As a result, by the end of 2009, ITV had increased its ad market share to 44.2%, almost twice that of the next biggest player, Channel Four, at 23%.
Daniel Knapp, advertising analyst at Screen Digest, said: “Advertising demand and marketers’ confidence is clearly up so far this year.
“2010 is going to be an interesting year for TV advertising – the football World Cup, the general election and the trend for marketers to plan their campaigns in the first half of the year, combined with favourable year-on-year comparisons with an exceptionally tough previous year, mean that making forecasts for 2010 is a hard job, but we’re cautiously optimistic that the UK market will grow 4.6%, and that is a good performance in these challenging times.”