Olympics has scared off TV advertisers, say media buyers

Advertisers have been "scared off" TV advertising by the Olympics being on the BBC, according to media agency traders who expect year-on-year market declines of up to 10% around the period of the London 2012 Games.

The Olympics: makes July and August tricky for commercial TV
The Olympics: makes July and August tricky for commercial TV

Although TV ad revenue is expected to rise in the second quarter, boosted by ITV’s rights to the Uefa Euro 2012 tournament in Poland and the Ukraine in June, forecasts suggest this will not continue in July and August.

Media agencies predict that TV ad revenue could decline by as much as 10% year on year in July 2012 and between five and 10% in August.

They said it is too early to make considered predictions about September.

A media agency executive, who asked not to be named, said: "Q3 looks a little wobbly at the moment with both July and August lower than expected. However, they’re both relatively small months in comparison to September.

"I think [September] will really give the best indication of whether the market will hold up through Q4 or whether we’re in for a prolonged drop in revenues."

It had been thought that the London 2012 Olympic and Paralympic Games would boost the UK ad market but because the tournament will be broadcast on the BBC there are fears it could actually drive up the cost of TV advertising.

If fewer people are watching commercial TV the relative cost of TV advertising becomes more expensive.

One TV buyer said: "I think advertisers have been scared off by the Olympics. The expected drop in commercial impacts is probably scaring them off with the expected price rises in the offing."

Follow Maisie McCabe on Twitter @MaisieMcCabe

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

Six Nations 2016: Why it's never been easier to target rugby fans

Six Nations 2016: Why it's never been easier to target rugby fans

The success of the 2015 Rugby World Cup and the Six Nations coming to terrestrial commercial TV means it has never been a better time to target rugby fans, argues RadiumOne's Rupert Staines.

Share
UK Super Bowl fans on social media: Paddy Power and FA are most followed brands

UK Super Bowl fans on social media: Paddy Power and FA are most followed brands

Over half a million Twitter users in the UK now follow American football-related accounts. Starcount, the social media data analytics company, discovered what people, brands and other sports rank high among their interests.

Share
Campaign Viral Chart: Heinz Super Bowl ad in top spot

Campaign Viral Chart: Heinz Super Bowl ad in top spot

The Heinz ad featuring dogs dressed in hot dog costumes was the most-shared ad this week in a chart full of Super Bowl ads ahead of the big game on Sunday.

Share

Get news by email