ITV hit by slowdown in adspend

After a record-breaking eight months, ITV’s ad revenues for August are predicted to drop by 4 or 5 per cent compared with last year’s figures.

After a record-breaking eight months, ITV’s ad revenues for August

are predicted to drop by 4 or 5 per cent compared with last year’s

figures.



ITV experienced double-digit growth in revenues for some months of 2000:

April’s figures increased by 17 per cent and June’s by 14 per cent.



However, TV buyers predicted that August revenues would be down on last

year, to around pounds 125 million.



’August is wide open,’ said Colm Feeney, broadcast director at Western

Media. ’The slowdown is due to a cut in spending by car manufacturers

and the demise of big dotcom budgets.’



Feeney said car ad budgets are being slashed to finance forecourt price

cuts and many dotcoms were not spending on TV due to a lack of

confidence in the City.



He predicted that a flood of fmcg advertisers would grab the cheap

airtime.



September is predicted to be slightly more stable.



There are mixed reports for October and November - the forecast

suggested the market would be flat year on year at best and some buyers

said it could be down on 1999.



’Last October, the market was pounds 217 million, which is so high it

might frighten off seasonal advertisers,’ said Matthew Platts, deputy

broadcast director at BBJ. ’And there will be no millennium brands,’ he

added.



Platts predicted that November would return to normal as pre-Christmas

brands returned to the market.



Overall, however, Platts said it was a ’bloody good year for ITV’, with

overall growth predicted to be 7 per cent.