Unexpected boost for TV ad revenues

The television advertising market is experiencing a sudden influx of money, with revenue reported to be up by more than ten per cent for January compared with this time last year.

It is thought the TV ad market has been boosted by an unexpected cash injection from the newspaper sector and by a number of campaigns from government marketing body COI Communications in the run-up to the anticipated General Election. Also, the Evening Standard is running a TV ad campaign for its free cinema ticket giveaway, The Star is promoting its cover price cut to 15p and The Times has been driving sales with a branding campaign.

But media buyers warn this influx of money could cause short-term inflation in the TV ad market, as the sector has not been delivering audiences.

Matt Blackborn, executive buying director at Starcom MediaVest, says: “I think there will be inflation in the first couple of months of the year because audiences have not been strong.”

Channel 4 is expected to experience revenue increases of more than 14 per cent in January compared with last year, while ITV1 is likely to see its revenue rise by more than four per cent.

However, media buyers believe this sudden momentum in the market will fizzle out. Billetts Media Consulting forecasts that total commercial TV revenue will be up four per cent for 2005 compared with last year.

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