Proactive Investors - UK advertisers are poised to slash spending on TV campaigns in the coming year as they brace for possible recession, according to a new survey,
Terrestrial broadcaster ITV PLC (LON:ITV) recently lowered its forecasts for advertising revenue and its forecasts look like being borne out.
Due to recession worries, 67% of UK advertisers intend to cut television budgets according to a survey of 59 UK companies by the Incorporated Society of British Advertisers (ISBA) and Ebiquity.
Many advertisers said they will still spend on streaming platforms, but switch away from television to digital media and online platforms.
Sophie Lund-Yates, Hargreaves Lansdown (LON:HRGV) equity analyst, said: “The question is whether ITV’s digital schemes can build enough scale and popularity, fast enough. In today’s fiercely competitive landscape, there simply may not be enough spare eyeballs to go around.”
According to the Guardian, which has seen the report, eleven of the top 50 UK advertising spenders were included in the companies surveyed, though no specific names were given.
Nick Waters, Ebiquity chief executive said: “Brand owners are sensibly positioning themselves for an anticipated recession by building more short-term flexibility in their budget planning.”
ITV’s share price fell 0.7% to 73p.