Broadcasters boosted by TV ad revenue July predictions

Television companies have been buoyed by news that July will be the third consecutive month to experience a growth in TV advertising revenue.

Although the rate of growth is not expected to be as high as in May - when it reached 14 per cent year on year - the July total television market is predicted to be up by more than 7 per cent, to a total of £225 million.

This compares with expected year-on-year growth of 6.7 per cent in June.

Observers suggest it shows a return of confidence in TV advertising.

GMTV and Channel 5 are outperforming July's market, with revenues predicted to be up by 19 per cent and 43 per cent respectively.

Accounting for Channel 5's success, Nick Milligan, its deputy chief executive, said: "The traditional planning lag is reducing. We are cleaning up in the late market as planners chase ratings."

But there is still good news for ITV and Channel 4 - both are set to experience year-on-year growth in July across most sectors of the market, despite losing share of viewing and share of total revenue this year.

Steve Platt, the managing director of Carlton Sales, said that although the TV market was looking quite positive, the crucial point is whether the upturn continues into the autumn.

Cumulatively, only Channel 5 and satellite and cable channels improved so far this year.

Andy Jones, the joint managing director of Magna, said: "The feeling is that things aren't as bad as they were. I remain cautiously optimistic."