Agencies urge Ofcom not to sanction more ad minutes

by Fiona Ramsay, Media Week 26-Mar-08, 14:30

Moves by Ofcom to allow ITV, Channel 4 and Five to carry more TV advertising would lead to reduced investment in TV, agencies have warned.

As part of a range of proposals, such as changes to the scheduling of ad breaks, the media regulator is consulting the industry on whether rules on the amount of advertising permissible on ITV, Channel 4 and Five should be relaxed.

Currently, public service broadcasters such as ITV, Channel 4 and Five can carry an average of seven minutes of advertising an hour, rising to eight minutes between 6pm and 11pm. New European Union rules allow these limits to be increased to 12 minutes an hour overall.

But broadcast directors warn of "substantial deflation" in the TV ad market if ad minutes are extended.

Agencies estimate that the cost of advertising on PSBs with 12 minutes in peak would come down by between 17% and 20%.

Caroline Binfield, Arena BLM's business director of television, said: "It will lead to a more cluttered market. I don't think clients feel the cost benefits would be worth the more cluttered feel on PSBs."

Mediaedge:cia head of broadcast Phil Wise said he was "convinced (more advertising on PSBs) would not be a good thing because of the longer-term effects on the TV market".

He said: "This is a substantial deflation, which would drive less money into TV and create a downward spiral effect."

Comments

David Cuff - 26/03/2008

TV airtime Buyers admit they would invest less if airtime prices go down due to rising commercial impacts. Does that mean they would spend more if prices go up due to decreasing commercial impacts? Regulations currently allow a maximum of 12 minutes in any single hour. Hours carrying 12 minutes are normally the ones that TV media buyers pay the highest prices for. Who are the broadcast directors warning about deflation? Their clients or the broadcasters? It a funny old world.

M Bowley - 27/03/2008

why not relax the rules and allow the channels to decide whether they release more minutes or not ? Therefore buyers worried about airtime rates falling could invest more in the Channels that haven't put out more impacts a bit like they did with Capital Radio