Advertisers benefit as TV ad costs fall

Costs of advertising on ITV have plummeted so much that a typical

400 rating 30-second ad campaign for an ABC1 adult audience is 13 per

cent cheaper than last year.



It is £184,000 cheaper on average to run a TV campaign than last

year, when the same campaign would have cost £1.4 million.



Figures from MediaVest for the period of January to August 2001 show

that campaigns for an adult audience are also 13 per cent down, a saving

of £153,000.



However, there is not the same cost savings to be made for

youth-targeted brands where the cost of a 400 rating 30-second ad

campaign is 8 per cent down. This still leads to a potential saving of

£104,000 per campaign on average.



There are potential bargains to be had for last-minute TV campaigns, but

evidence suggests that advertisers are sticking with planned campaigns

and opting for bottom-line savings.



Kevin West, a TV buying director at MediaVest, said: "We are expecting

costs to be 20 per cent lower year on year by November but advertisers

are still not rushing in, most are holding on to their money. At the

moment there is some fantastic value and those advertisers which are

spending are reaping the benefits."



BT has spent 40 per cent less on TV for the period of January to July

2001. Its spend has fallen from £43 million in 2000 to £25

million in 2001, according to the latest figures from AC Nielsen

MMS.



Coca-Cola has dropped its spend by nearly a quarter to £15 million

from £19.7 million.



Meanwhile, COI Communications has upped its spend by £19.4 million

to £46 million.