Move to raise TV ad prices not welcome, say advertisers
19 Jan 2010
Responding to press speculation today that broadcasting regulator Ofcom is considering removing the duty on the UK’s commercial television public service broadcasters (ITV, C4, Five) to sell all their ad minutes, advertiser body ISBA said the move would seriously impact upon both marketers and consumers.
The current duty on television companies to sell all their allotted minutes protects business from facing deliberate price rises should the broadcasters choose to cut ad time.
“It is simple economics,” said ISBA’s Director of Media and Advertising Bob Wootton. “If supply is restricted, prices jump up.
“ISBA does not believe it is in the long-term interests of TV companies to treat their major customers in this way.”
