Wednesday, 23 May 2007

IPTV "shot in the arm" for falling broadcast ad revenues?

A report published this week by the Advertising Association points to declining revenues for broadcasters in the UK. This follows reports in the US that broadcasters are struggling to sell commercial slots for the upcoming Autumn TV season with the impact of digital video recorders cited as a primary concern.

According to the Advertising Association broadcast ad revenues fell last year by 4.7 per cent from 2005 levels to £4.59 billion. Television has the second largest share of the total £19 billion UK advertising market at 24.1%, after print media with 43.7%.

So, another week and another set of statistics showing the decline in broadcast ad revenues. Audience fragmentation means now that the question is not whether it is a sustained downward trend but rather whether broadcasters can slow the decline.

As broadcasters move to IPTV platforms they will be able to target viewers in micro-segments and take advantage of interactive capabilities, creating a clear business case for advertisers. IPTV will prove to be a shot in the arm for broadcasters.

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