Channel 5 is poised to sign the first terrestrial TV
equity-for-airtime deal in a contract worth pounds 1.2 million with the
dotcom insurance company Rapid Insure.
Rapid, which launched this month backed by pounds 1 million of venture
capital, will pay pounds 200,000 for advertising airtime while Channel 5
will take an 8 per cent stake in the company in exchange for sponsorship
worth pounds 1 million.
The dotcom will sponsor the weather during Channel 5’s main news
bulletins from 1 April until 31 March in 2001. Rapid’s sponsorship
bumpers will appear around three weather bulletins a day during the week
and three times over the weekend.
Nick Milligan, Channel 5’s sales director, said: ’We have been putting
in place an equity-for-airtime structure for some time. This is the
first deal and there are more to follow. Our objective is to catch
companies before they go to the second or third round of funding.’
The deal was put together by James Burgon, head of new business at
Channel 5, and Richard Dunbabin, managing director of Rapid. It is
another example of the broadcaster’s strategy to take a more creative
approach to advertising and media buying.