New-media companies set to increase adspend on TV

The traditional make-up of the TV advertising market is facing a major shake-up next year, with the influx of advertising by new-media companies set to account for up to 10 per cent of all TV revenue.

The traditional make-up of the TV advertising market is facing a

major shake-up next year, with the influx of advertising by new-media

companies set to account for up to 10 per cent of all TV revenue.



Broadcasters are predicting a UK repeat of the internet advertising

fever in the US, where e-commerce companies are expected to spend about

dollars 1.8 billion on TV advertising this year, including dollars 600

million in the final quarter.



According to forecasts from Carlton Sales, new-media companies will be

spending about pounds 30 million to pounds 35 million on TV advertising

this year.



Although that only represents about 1 per cent of all TV revenue,

Carlton predicts that spend levels next year could reach pounds 300

million.



The race to establish new-media brands in an increasingly crowded

new-media advertising market will redefine the shape of TV revenue,

according to Carlton Sales’ managing director, Steve Platt.



’Although it’s difficult to get accurate figures, spend levels by

new-media companies is massively up in the first quarter of next year,’

Platt explained. ’All of the TV companies are looking at a bumper year

in 2000 and the make-up of TV expenditure will change dramatically as

these new companies come on-stream.’



Platt said that ITV would become less reliant on FMCG advertisers, whose

TV advertising spend is expected to be down by about 10 per cent this

year. ’Although we want to be loyal to our traditional advertiser-base,

we have to be realistic. We can’t afford to turn these new advertisers

away,’ he said.