NEWS: Sales houses moot loyalty schemes to reward advertisers

ITV sales houses are pushing hard for the reintroduction of volume discount scales on ratecard in a desperate bid to keep major advertisers loyal to the network.

ITV sales houses are pushing hard for the reintroduction of volume

discount scales on ratecard in a desperate bid to keep major advertisers

loyal to the network.



The drive is being led by TSMS and Carlton, which have captured the

current mood within ITV companies, and are pressing for loyalty

incentives to be introduced as soon as possible.



The last formal volume discount scales were offered by Thames Television

in 1993. GMTV has continued to offer volume discount on ratecard, but

the issue has been given fresh momentum for the ITV companies faced with

the launch of Channel 5 and Granada Sky Broadcasting.



The new channels are certain to spark a bitter fight for ad budgets and

the ITV sales houses are already building the issue of volume discount

levels into their 1997 trading discussions.



Tim Wootton, chief executive of TSMS, said: ‘The feeling within ITV in

general is that larger advertisers need incentives to stay loyal to the

channel. It’s being driven by the fact that we feel there is a better

way of trading. There is a real possibility of volume discounts

appearing and I’d like to see it happen soon.’



Bill Barker, broadcast director at J. Walter Thompson, said: ‘ITV is

determined to stem the flow of revenue that it is losing to other

national channels. The key thing here is that the contractors are

looking for volume growth discounts as well.’



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