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.’