BROADCASTERS FACE ADVERTISING SLOWDOWN

AMID warnings that revenues from the advertising sector are set to fall share prices in two of the ITV companies experienced a sharp drop.
Market analysts Merrill Lynch issuing a downwardly revised forecast in the sector, shares in ITV companies Granada and SMG dipped following the release of figures that trimmed up to 8 per cent of the year end figures for ITV growth.
While experts had been expecting an improvement in the market sector, there is increasing concern that the situation may be getting worse. According to media buyers, commercial television may experience a drop of up to 20 per cent in Q2 and are now hoping to see a pick up towards the end of the year.
The unexpected size of slowdown has been attributed to several factors, but predominantly the lack of major sporting event attractions to boost ratings has seen many companies delay marketing spend. Many traditionally heavy-spend advertisers in the automotive, domestic hygiene and cosmetics industries have severely trimmed early and mid-year advertising spend.
In the midst of an election the problem is likely to be further compounded this quarter by a temporary cut back in the advertising spend by the government’s Central Office of Information. (SP)