Channel 4 to close red button and mobile ad sales operations

by Emma Barnett, mediaweek.co.uk 10-Nov-08, 10:45

LONDON - Channel 4 is closing the interactive and mobile parts of its advertising sales business, which will result in up to four job losses.

From 31 December, 2008, Channel 4 will no longer offer interactive red button ads. It ceased offering red button options behind content at the end of 2005, but now will no longer offer the option to click through to additional content behind ads.

A Channel 4 spokesperson said: "Over the past 12 months we have seen a steep decline in demand for interactive TV advertising and it is with regret that we are closing this area of business."

The broadcaster is also ceasing to sell ads around its mobile content. Channel 4 currently produces a 20 minute rolling loop of short form TV content, broadcast across the major mobile networks, which carries advertising.

Shortened versions of programmes like Hollyoaks, Grand Designs and Supernanny all feature on the mobile platform, but from 31 December, these will no longer carry any advertising.

However, unlike the interactive ad business, Media Week understands that Channel 4 is open to restarting this area of the business, should appetite for mobile content significantly increase.

The closure of these divisions is part of Channel 4's cost cutting drive, aimed at save £100m over the next two years, which will see 150 job losses in total.

It has already closed down 4DS, its third party digital advertising sales business and withdrawn from digital radio, but remains part of the 4Digitial consortium.