UK TV ad revenue to grow by 8% over January and February

Media agencies in talks with broadcasters over dividing their advertising spend between ITV, Channel

Television advertising revenue in the UK is expected to grow by an average 8 per cent during the first two months of 2011, reports campaignlive.co.uk.

According to industry sources, the TV ad market is expected to increase between 8 and 10 per cent in January and between 6 and 8 per cent during February.

Media agencies are understood to be in talks with broadcasters over dividing their advertising spend between the four main selling points - ITV, Channel 4, Channel 5 and Sky Media.

Following a year-on-year decline of 9.8 per cent in 2009 to £3.7bn, the TV ad market has rebounded in 2010 and is expected to rise around 14 or 15 per cent.

However, analysts say exact estimates for next year could be known once the autumn trading season is over.

Despite these growth predictions, some agency traders are still apprehensive whether the rebound, which started this March, will really continue through the next year.

Meanwhile, Ofcom's decision to introduce product placement on the UK television this week is expected to further boost revenues of the TV ad sector. Media agencies are suggesting that the boost could be in the range of £200m within the next five years.