TV ad rates lowest since 1980s

Television advertising rates have fallen to the lowest levels since the 1980s, according to a report by media and marketing consultancy Billetts.

Watching TV

Television prices are set to fall by 16% year-on-year, and, at approximately £4.16, the price of reaching 1,000 adults with a TV ad is the lowest since the 1980’s, the report says.

Billets also reports TV and women’s magazines will be the hardest hit of other media this year by advertising rates that have fallen by 9% on average for the sector.

Meanwhile, the consultancy predicts rates at newspapers will fall by an average of 7% for mono and 5% for colour during 2009.

Rates have been hit by more sophisticated online options together with less advertising from recession hit sectors such as banking and automotive, according to Billetts.

However, internet rates will also on average be between 5 and 10% lower in 2009, it says, with only the cost of search advertising in certain categories growing.

“The severity of the downturn will have serious medium to long-term implications for media owners and agencies in the same way as it already has for some of their clients” says Nick Manning, chief operating officer at Billetts parent company Ebiquity.

The report comes at the same time as commercial television marketing body Thinkbox unveils its first television advertising campaign to persuade clients of the value of the medium.

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