Are you taking advantage of the current TV advertising market?
Date posted: 17 Sep 2019
Posted by: Smithfield
Post category: Blog
It’s an unusual Autumn with political uncertainty clouding marketing options and decision making. We have seen a further £40m wiped from the 4th quarter revenue predictions in the last week. We are still talking of over £1billion being invested in TV airtime in Q4 so it’s not quite Armageddon. There will be some easing on pricing and that has been apparent for some time. The first clue was ITV suspending late booking charges back in May. Another was when they extended the period. Clearly demand was down and remains so. And, if you are still hearing the term Advanced Booking deadline then perhaps we should chat?
The TV market is many markets acting in parallel so while we are looking at an overview for price easing, advertisers are seeing their 16-34 costs soar. ITV’s September revenue was reasonably stable – final figures aren’t quite yet confirmed but we are estimating it to be flat YoY within a percentage point or two. But recorded impacts are significantly down as the young adopt unmonitorable ways to view TV content resulting in a price spike approaching 25%.
So the downturn in demand doesn’t quite guarantee an Eldorado of cheap costs across the board. Annual TV revenue will still be £4 billion, unequivocally a healthy market and one that confirms a strength of business confidence we’d like to see more of from Westminster. Even, where some clients have made a pragmatic decision to suspend their investment, it doesn’t mean the market is about to collapse. It does mean there are advantages for the astute TV buyer to exploit.
Longer term, the arrival of Apple’s much heralded streaming subscription service accentuates the dilemma of C4 and ITV who are dependent of their advertising revenue for their income. Their business models depends on the audience accepting interruption of their entertainment. As uninterrupted viewing, via subscription services such as Netflix and Apple, become the norm for the new generation of viewers that model will be tested to the full.
If you want to learn more about how Smithfield can drive greater effectiveness from your TV campaign then why not get in contact with us by clicking here. Or, give Patrick Woods a call to find out more.
Or, read more opinions, news and insights from Smithfield. Our latest blog piece is about Marketing in a recession.
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