ITV’s advertising revenue is set to fall for the first time in 18 months as it braces itself for a tough summer. The commercial broadcaster has enjoyed a continuous run of month-on-month increases in TV ad revenue stretching back to late 2009 in the recovery from the recession. However, media buying agencies forecast that this run will come to an end in May, adding business may not pick up again until September.
ITV1’s ad revenues are expected to fall by at least 7 per cent year on year in May and possibly more than 15 per cent in June. According to reports, revenues could be down by more than 25 per cent. May will be the first month since November 2009 that the broadcaster’s flagship channel, ITV1, has suffered a year-on-year TV ad revenue fall.
For ITV the fall in May and June is not unexpected. Last year’s football World Cup provided a massive surge in ad spend – with ITV taking the lion’s share. TV ad revenues were up more than 20 per cent and 40 per cent year on year in May and June respectively as a result.