ITV braced for tough summer ad market

ITV's television advertising revenue is expected to fall for the first time in 18 months as the broadcaster braces itself for a tough summer without a major sporting event.

Senior media buying agencies forecast that ITV's continuous run of month-on-month ad revenue increases since 2009 will come to a halt in May, according to a report in The Guardian.

Revenues at flagship channel ITV1 are expected to be down 7% year-on-year, but could be down by as much as 15% in June, with some sources even expecting a 25% drop.

If that situation transpires, May would be the first month since November 2009 that ITV1 has endured a year-on-year fall in ad revenue. Some media buyers believe that the market will not pick up again until after September.

The data also reflects forecasts from ITV licence holder STV, which expects the TV ad market to be up 7% year-on-year in April due to the royal wedding, but fall by 7% in May, "reflecting the pre-World Cup effect on May last year".

The lack of a major sporting tournament is the primary reason why the ad market is expected to struggle, with last year's World Cup boosting ITV1's income by 20% and 40% respectively in May and June.

However, ITV is expected to see a recovery in ad revenue from September, when it will have exclusive UK rights to the Rugby World Cup in New Zealand.

Also later in the year, corporate companies such as McDonald's are expected to launch their advertising campaigns for next summer's London Olympic Games.

One media buying industry executive said: "As we get to the back end of 2011 and into 2012 things are looking fairly positive with big advertiser events in the London Olympics and Euro 2012 football championships."