Each week, one of the Agency Directors give their thought on a story that caught their eye in the press. Director of AV Investment Jon Chambers discusses this week’s ITV advertising revenue announcement.
ITV have announced that their Q4 advertising revenue is set to decline by 7% year-on-year, which will see their full year results finish 3% behind 2016. These figures also represent greater negativity than was previously reported in ITV’s H1 interim results, demonstrating the destabilising effects the BREXIT decision and other economic variables have caused.
ITV have of course been quick to point out that their overall finances remain in good health (5% growth), with non-advertising revenues (primarily content production and syndication) driving this. ITV will require these elements of their operations to remain strong, as continuing uncertainty (driven by currency fluctuations and its impact on manufacturing and shipping costs) is set to have an impact on 2017 TV budgets. Total advertising revenue (all media) in 2017 is still projected to rise, but this is driven largely by digital growth. Traditional media, with TV at the epicentre, is projected to decline.
Brands will benefit in the short term from lower airtime costs, and dependent on audience supply, this will likely continue into 2017.