TV revenue set for major dive

Television advertising revenue is expected to take a major dive in the second quarter of this year following double-digit growth in the first quarter of 2005.

The market is expected to be down by about five per cent for the second quarter year on year, while revenue was up by more than 13 per cent for the first quarter year on year. Marketing Week first revealed that the significant rises seen in the first quarter would peter out (February 24).

But instead of the market levelling out it has, according to one industry insider, “fallen of the edge of a cliff”. The outlook for the TV advertising sector is now uncertain and buyers are revising their figures for the year downwards.

The expected year-on-year decline for the second quarter of 2005 is expected to hit ITV1 hardest. It is estimated that its revenues will be down by ten per cent.

A number of reasons are attributed for the decline, such as last year’s European Championship, which contributed a lot of money into the TV sector in the second quarter, in particular for ITV1.

Andy Roberts, managing partner for Starcom Europe, Middle East and Africa, says: “This year, Easter was also early and other factors, such as the forthcoming General Election, have had an impact as the COI stops spending.”

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