TV advertising to begin recovery in 2008

The television advertising market will start growing in 2008, according to a report published by ZenithOptimedia. The media agency joins the growing number of experts to claim that the TV market is recovering.

The agency says the market will “stabilise” this year and it predicts “modest” growth of 2% in 2008, with further growth of 1% to 2% a year. But its also report that market share will decline from 27.2% in 2006 to 22.7% in 2012.

The report says that ad revenues generated by the digital offshoots of the main terrestrial channels will help offset declining performances of ITV1, C4 and Five in 2007.

But ITV’s four digital channels are not growing fast enough to make up for ITV1’s decline: ad revenue at the flagship channel is expected to be down 7% year-on-year – roughly £90m – and for revenues to shrink by 4% across all the ITV-branded channels.

The agency predicts that revenues from Channel 4’s flagship channel will decline 2% in 2007, although growth of its digital channels E4, More4 and Film4 should bolster the group’s fortunes with ad revenues across the board growing by 1%.

The performance of Five Life and Five US should turn a 3% drop in revenue at the main channel to a 2% increase for the group as a whole.

Last month Viacom Brand Solutions managing director Nick Bampton predicted TV ad spend would rise this year, despite a sluggish start to the year and forecasts to the contrary (MW June 14). Other sales houses and agencies are predicting either a stable market or a fall of up to 1%.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here