Is ITV's ad revenue stream in trouble ?

Is ITV's ad revenue stream in trouble ?

Author
Discussion

tubbystu

Original Poster:

3,846 posts

260 months

Tuesday 28th December 2010
quotequote all
Whilst watching Poirot on ITV 1 on Christmas day, both my Father and I noticed that the penultimate ad break at circa 22:45 did not include any product adverts, just trailers for future programming.

If they cannot fill effectively a high value peak time slot on their main channel with any ads, what chance do they have ?

The slots seemed to get less and less ads and more trailers as the evening progressed, before the one noted above.

I know there are only so many furniture and Boxing Day sales ads that the human can cope with, but to have a 3 minute break just filled with forthcoming programmes must show how weak the market still is.

Eric Mc

122,038 posts

265 months

Tuesday 28th December 2010
quotequote all
I hadn't noticed because by that stage in the evening I had become comatose. I was looking forward to Suchet's rendition of "Murder on the Orient Express" but found it all rather tedious.

Derek Smith

45,666 posts

248 months

Tuesday 28th December 2010
quotequote all
The way ads are added to TV programmes is rather complex. The slots early on in a longish programme are more prized and therefore more valuable. ITV is strictly lmited to how much outside advertising they can run in a specific time but trailers for ITV programmes are not included in that limitation - they have one of their own. So one would assume that they moved the trailers to the less expensive end of the programme to get more revenue.

That said, TV advertising has been hit badly over the years. Due to falling income they've just been allowed limited use of product placement.

turbobloke

103,968 posts

260 months

Tuesday 28th December 2010
quotequote all
Interesting observation. Maybe the rates they wanted for that slot were too much under present market conditions.

Yet as of the middle of November ITV were reporting 11% improved revenues based on a continued recovery in advertising income:

http://www.ft.com/cms/s/0/70a303ea-f158-11df-8609-...

okgo

38,055 posts

198 months

Tuesday 28th December 2010
quotequote all
As Derek said.

There were ads running in earlier breaks of that program, I remember the chanel one running

turbobloke

103,968 posts

260 months

Tuesday 28th December 2010
quotequote all
okgo said:
As Derek said.

There were ads running in earlier breaks of that program, I remember the chanel one running
Yes and Derek's scenario would be consistent with advertising revenues increasing.

tubbystu

Original Poster:

3,846 posts

260 months

Tuesday 28th December 2010
quotequote all
You get used to it on ITV 2, 3 & 4. Just surprising to see it on ITV1 on Christmas Day evening. One single advert would have made it less apparent.

Perhaps I should have drink more hehe

On ITV 3 & 4, daytime re-re-runs of old 2 hour dramas (Morse, Frost, Poirot, Midsomer etc), run an additional 10 or 15 mins to allow for additional adverts- but this is probably due to rate chargable for audience footprint and the need for more airtime at less per second charge and less regulation.

Overnight they often only run 1 hour 45 and tend to only have "station bumper/sponsor ident" in and out and a trailer in the break.

I know ITV had a terrible 2008 but thought they were recovering, primarily due to return of advertising budgets.

hungry_hog

2,242 posts

188 months

Tuesday 28th December 2010
quotequote all
Do these plums realise that half the people are watching on Sky+ (or similar) and fast forwarding the ads?

E Ponym

1,233 posts

267 months

Tuesday 28th December 2010
quotequote all
I have not seen the plethora of holiday ads that normally appear between Christmas and New Year, perhaps the advertisers are relying on the interweb to push their "message".

Russ

okgo

38,055 posts

198 months

Tuesday 28th December 2010
quotequote all
hungry_hog said:
Do these plums realise that half the people are watching on Sky+ (or similar) and fast forwarding the ads?
Nope, I'm sure a tv company as large as itv has not even thought about that... For gods sake man!!

Hooli

32,278 posts

200 months

Tuesday 28th December 2010
quotequote all
E Ponym said:
I have not seen the plethora of holiday ads that normally appear between Christmas and New Year, perhaps the advertisers are relying on the interweb to push their "message".

Russ
I have, between the even more boring furniture ones.

Jonny671

29,397 posts

189 months

Tuesday 28th December 2010
quotequote all
I've noticed recently there are alot of the same adverts on.

Gareth79

7,672 posts

246 months

Tuesday 28th December 2010
quotequote all
We noted that there were a heck of a lot this year for sofas and beds and less other stuff. Also a lot for the "ad of the year" which is one long programme of TV adverts, I wonder how they decided which ads to feature in that?

Funk

26,285 posts

209 months

Tuesday 28th December 2010
quotequote all
okgo said:
hungry_hog said:
Do these plums realise that half the people are watching on Sky+ (or similar) and fast forwarding the ads?
Nope, I'm sure a tv company as large as itv has not even thought about that... For gods sake man!!
There was talk of Sky making it so's you can't fast-forward the ads on Sky+ for that very reason.

A lot of vids on the internet have embedded adverts you have to watch in order to get to the video you wanted to see.

okgo

38,055 posts

198 months

Tuesday 28th December 2010
quotequote all
Funk said:
okgo said:
hungry_hog said:
Do these plums realise that half the people are watching on Sky+ (or similar) and fast forwarding the ads?
Nope, I'm sure a tv company as large as itv has not even thought about that... For gods sake man!!
There was talk of Sky making it so's you can't fast-forward the ads on Sky+ for that very reason.

A lot of vids on the internet have embedded adverts you have to watch in order to get to the video you wanted to see.
Makes sense, has been happening on the internet for ages.

Sadly that is half the appeal of sky/virgin + for me. I fking hate adverts.

BERGS2

2,802 posts

248 months

Wednesday 29th December 2010
quotequote all
okgo said:
Funk said:
okgo said:
hungry_hog said:
Do these plums realise that half the people are watching on Sky+ (or similar) and fast forwarding the ads?
Nope, I'm sure a tv company as large as itv has not even thought about that... For gods sake man!!
There was talk of Sky making it so's you can't fast-forward the ads on Sky+ for that very reason.

A lot of vids on the internet have embedded adverts you have to watch in order to get to the video you wanted to see.
Makes sense, has been happening on the internet for ages.

Sadly that is half the appeal of sky/virgin + for me. I fking hate adverts.
Sadly, the fact is that if you want to watch broadcast content that isn't a 'dog on a skateboard' - someones gotta pay for it...



markcoznottz

7,155 posts

224 months

Thursday 30th December 2010
quotequote all
BERGS2 said:
okgo said:
Funk said:
okgo said:
hungry_hog said:
Do these plums realise that half the people are watching on Sky+ (or similar) and fast forwarding the ads?
Nope, I'm sure a tv company as large as itv has not even thought about that... For gods sake man!!
There was talk of Sky making it so's you can't fast-forward the ads on Sky+ for that very reason.

A lot of vids on the internet have embedded adverts you have to watch in order to get to the video you wanted to see.
Makes sense, has been happening on the internet for ages.

Sadly that is half the appeal of sky/virgin + for me. I fking hate adverts.
Sadly, the fact is that if you want to watch broadcast content that isn't a 'dog on a skateboard' - someones gotta pay for it...
He already has, by purchasing a sky/virgin package, or paying a one off charge for a freeview box or the absorbed freeview cost in the tv itself. Thats on top of the mandatory tv licence. If the business model is so sh*t that the revenue from charging for a service doesnt cover the costs, then, well tough. There are far too many adverts on sky/virgin, to the extent that I cant beleive people watch them. May have been ok 20 years ago with a captive audience and just ITV and channel 4, but not now.

hungry_hog

2,242 posts

188 months

Thursday 30th December 2010
quotequote all
+1 to the above
Also I would rather watch a dog on a skateboard than 99% of what is on ITV

Oakey

27,584 posts

216 months

Thursday 30th December 2010
quotequote all
There's an entire hour long show on at 9pm for 2010's 'Best TV Ad'.

I was just thinking recently how much I'd like to watch a show dedicated entirely to television adverts.

dandarez

13,288 posts

283 months

Friday 31st December 2010
quotequote all
Don't forget they have man in charge now who leaves controversy in his wake:
he once was at advertising agency Saatchi & Saatchi,
then he was a failed head of the FA,
and for seven years everyone loved him at Royal Mail.

Yeah, you'll probaby hear soon enough how he's turning ITV around
(or off!) ...rolleyes