Poor sales dent 1996 TV ad revenue hopes

TV buyers are downgrading their estimates of TV advertising revenue for 1996, because of weak summer and autumn trading.

Estimates for Channel 4’s ad revenue have been downgraded from a 15 per cent increase in 1996 down to 11 per cent, while it is estimated that ITV will achieve a three per cent increase, rather than five per cent.

Total television income, which includes big percentage increases from a low base for both satellite and cable stations, is likely to achieve only a five per cent increase, according to buyers’ estimates.

The reason for the lower estimates is an anticipated decline of five per cent across all TV in August, and a five per cent year-on-year fall in the key month of September for ITV.

“The market is unbelievably flat,” says Bill Barker broadcast director at J Walter Thompson. “A lot of car advertisers that were expected are not there. In addition a lot of fmcg advertisers have cut their budgets.

“September is key because it is when the major programme initiatives start on ITV,” adds Barker. “Advertisers usually use it as the start of their autumn and winter activity. A disappointing market is good news for advertisers in terms of airtime inflation.”