Recovery in TV advertising market expected to continue

Hopes of continued growth for major networks ahead of vital 'litmus test' last quarter

The recovery in Britain's TV advertising market, which has so far shown strong double-digit growth on 2009 figures, is expected to extend into the final quarter of this year.

But, there were fears within the industry if the state of the market - boosted by increased spending around the World Cup - would continue in the last quarter. As the last three months of 2009 had registered strong growth, there was a general feeling that the last quarter performance would show the true state of the market.

Industry sources predict that the total UK television ad spend will increase 8 per cent year-on-year in October. Advertisers are also understood to be reaching for advance bookings with TV sales houses for placing their campaigns.

While ITV is expected to register an 11 per cent y-o-y growth in its ad revenues during the fourth quarter, Channel 4 and BSkyB are expected to register 12.5 and 8 per cent growth, respectively.

A senior executive at one media buying agency said, "the fourth quarter was always going to be the litmus test. I think we conclude that TV 'works' and delivers return on investment, so marketers have got back into bed with it."


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