The competition from cash-rich technology, telecoms and
business-to-business advertisers is pricing FMCG advertisers out of TV
and forcing them into other mediums, according to a report by The
John Billett, chairman of The Billett Consultancy, said the anxiety of
TV channels to produce programmes that attract lucrative technology,
telecoms and business-to-business advertisers has been at the expense of
shows for housewives, the staple audience for FMCG advertisers.
He also blames the higher cost of advertising on rising production and
Billett said: ’TV companies are accepting high technology advertising
and charging premiums for it, and are flaunting themselves around new
technology advertisers, which will not last for ever.
’If TV stations were able to maintain their appeal to housewives, and
the price was not elevated, it would be easier for FMCG brands to retain
He suggested that FMCG advertisers should adopt a multi-media approach
to maintain value for money.
Billett points to the significant decline in FMCG’s share of advertising
during 1995 to 1999. The report says that, as a portion of advertising
expenditure, it has been reduced from 27 per cent to 21 per cent,
compared with a 3 per cent decline in expenditure across all mediums
during the same period.
In the past five years, 125 food brands have stopped using TV. Outdoor
and press have been the main benefactors from this displaced TV
TV companies, however, hit back at Billett’s suggestions that they were
neglecting the needs of FMCG advertisers.
Steve Platt, managing director of Carlton Sales, said: ’FMCG expenditure
on ITV is continuing to decline, so of course, we are not as reliant as
we once were on the categories, but they are still important to us.’