BBC annual report reveals 13% rise in marketing spend in 2006…

The BBC hiked its marketing spend by almost 13% in 2006 to £45.4m, according to figures released this week.

Figures show that spending on marketing, press and publicity accounted for 1.5% of output spend, up from 2005 when the £40.3m accounted for 1.4%. The numbers were unveiled this week as part of the BBC annual report.

An additional £22.2m was spent on on-air trails, down marginally on £23.7m a year earlier. Market research and consumer services accounted for £14.3m, up from £12.1m in 2005. The report also showed that BBC director of marketing Tim Davie was given a £38,000 pay rise – the largest of any corporation executive – to take his annual salary to £291,000 in the 12 months to March 31.

Director-general Mark Thompson’s salary increased by £15,000 to £624,000. Meanwhile, director of future media and technology Ashley Highfield pocketed a rise of just £1,000 taking his packet to £292,000.

BBC governing body the BBC Trust has also published its report. The document is the first by the Trust, which took over from the Governors in January this year, and the first for chairman Sir Michael Lyons, who stepped into the position left vacant by Michael Grade’s defection to ITV.

In it the Trust criticised the BBC for lacking in innovation. It followed BBC audience research which reveals the corporations largest “performance gap” occurs in the area of innovation.

In a survey of 4,500 licence fee payers, 72% thought innovation was important for the BBC, but only 51% thought it was performing well in the area.