ITV see slowdown in advertising revenue

Broadcasting giant ITV (LON:ITV) has seen a fall in advertising revenue of eight percent to £769 million in the first half of 2017 – the worst fall since the final quarter of 2008.

The channel is hoping that popular programmes such as Victoria and Love Island have attracted high numbers of 16- to 34-year-olds viewers to offset bad viewing figures.

According to the chief executive Peter Bazalgette, ITV’s performance was “very much as we anticipated”.

“ITV is the only channel to deliver a commercial audience over five million and Love Island demonstrates young viewers engage in great TV,” he said.

ITV’s second half of the year looks to be more promising, with record views for the channel brought in by Love Island.

The show ran from early June until Monday and had an average audience of 2.4 million people.

“Love Island demonstrates that young viewers engage in great TV content,” said the broadcaster.

The second half of 2017 should also be boosted with “build-up of programme stock”, including Victoria and Cold Feet.

Analysts have predicted the channel’s ad revenue to be down about 6 percent over the whole year, which is set to be the worst annual performance since 2009 when there was a 9.4 percent fall. However, the broadcaster said it expected to outperform the wider UK TV ad market.

The channel has blamed the fall in advertising revenue on the  “ongoing economic and political uncertainty”, where marketers are holding back budgets.

“ITV continues to deliver the mass audiences demanded by advertisers as well as delivering the key target demographics. ITV is the only channel to deliver a commercial audience over five million,” said Chairman Sir Peter Bazalgette.

ITV is waiting for the start of the new chief executive Carolyn McCall from easyJet, who will start in January of 2018.