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UK TV advertising outlook 2010 - Venture Insights

Report Overview

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UK TV advertising outlook 2010

PublisherEnders Analysis.
Publish Date January 18, 2010
Sector FTA TV.

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December 2009 showed exceptional year-on-year growth of around 10% in TV NAR (Net Advertising Revenue), causing the year to end down -11%/12% according to market estimates, which as recently as August were contemplating a decline of -15% or below.

The December spike reflects various causes, including robust retail conditions in the last days of reduced VAT at 15%, strong likelihood of marketers releasing budgets held back earlier in the year due to uncertainties over the economy and record-breaking audiences for The X Factor.

TV NAR in Q1 2010 is shaping to be up by 1% or 2% on Q1 2009, but cyclical economic, structural and other one-off considerations have caused us to put our central case TV NAR forecast for 2010 at -2.5% down on 2009, with a further fall of -2.5% anticipated in 2011 before recovery starts in 2012.