Scottish broadcaster predicts 7% ad revenue fall in May ahead of a summer without a major football tournament
Scottish ITV licensee STV has given the first solid insight into the scale of the fall-off in TV advertising expected this summer forecasting the market is set to fall by at least 7% year on year in May.
STV's forecast marks the first time a UK commercial broadcaster has gone public with figures on the start of the summer downturn in TV advertising after months of guesswork from analysts and media speculation.
Given that the Scottish broadcaster is part of the ITV network its numbers are usually a pretty accurate barometer of the performance of ITV plc, which owns all the channel 3 franchises in England and Wales.
Commercial broadcasters, and particularly ITV, have been steeling themselves for a decline in TV ad revenue given the tough comparatives with last year's advertising bonanza during the football World Cup in South Africa.
STV said it has made a "positive start" to 2011 with growth in line with expectations for the current financial year.
The first quarter has been strong for STV with total revenues up 9% year on year. Within this STV's national TV ad revenues have risen 11% in the first three months, however its local TV revenues "continue to lag" by falling 10%.
STV said that while in April it expects the total TV ad market to be up by 7%, thanks to Easter spending by advertisers, May will be down 7% "reflecting the pre-World Cup effect on May last year".
The company said revenues in its regional market will be hit as last year's figures were boosted by the Scottish parliamentary election, with the forecast of a fall of 19% in April and 10% in May.
"Whilst the advertising market remains short-term in outlook, we are creating new opportunities to grow advertising revenues and increase our market share," said Rob Woodward, chief executive of STV.
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Source: http://www.guardian.co.uk/media/2011/apr/20/stv-advertising-world-cup
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