Viacom chief bullish over TV advertising revenues for 2007

TV%20HighlightViacom Brand Solutions (VBS) managing director Nick Bampton is predicting television advertising spend will rise in 2007, despite a sluggish start to the year and forecasts to the contrary.

Bampton is the first high-profile media figure to predict a rise in TV ad spend this year. Most media agencies, which are revising their latest forecasts upwards, still believe net television advertising revenues will fall short of 2006.

According to Group M figures – due to be published later this month – total net TV advertising revenues for 2007 will be £3.407m, a slight drop on £3.423m in 2006. It is expected to see another small drop in 2008.

Bampton, speaking at the Marketing Week TV conference, said TV advertising spend was up by nearly 11% in six years despite an “annus horribilis” in 2006. He added/ “Our figures are showing that TV is likely to grow in 2007.”

He believes the medium is on the verge of a second “golden age”. Meanwhile, Bampton predicted a “major flaw on the horizon” for search, which makes up 75% of total internet spend.

He added: “Products and services are competing increasingly solely on price in this arena, which ultimately means margins start to be eroded.”

In order to succeed, brands would have to establish either an emotional bond with the consumer or raise awareness of the product. He says that this can only be achieved through brand advertising, which will recover.

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