Media News

What a year it's been. It only seems like the other day that I was saying its not all doom and gloom in TV Land. 2009 still sees us watching more TV with viewing hours up to a whopping 3.5 hours a day, but, despite my desperate hope that the mighty strength of TV could not be suppressed by the economic climate, I have to admit defeat.

From a revenue viewpoint ‘murky’ doesn’t come close to where we are now. With advertiser revenue waning at a record breaking rate, and with society glued to their TV sets instead of spending their hard earned cash, it's been decades since advertisers have been blessed with such an opportune time to be on air. If ever there was a time to put it on the box, as the late/great Michael Jackson would say, “This Is It.”

So what has been driving these bargain basement prices? - Audience figures this year on STV were vastly down (Ads -12% Jan-June), and although this is disappointing, it’s hardly unexpected on the back 2008’s strong performance. Besides, these viewing figures actually helped offset the lowering prices fuelled by STV’s distressing 20% slump in revenue during the same period. The key sector lowering spend on STV was retail, and although this mirrored the situation on ITV, ITV also suffered due to lowered spends in the Motoring & Financial sectors. It was only really Government expenditure that maintained its support for, and reliance on TV.

As September was the first month in 2008 to experience a significant drop in spends, it was widely regarded that September 2009 would be the turning point heralding a renaissance or a restoration of faith in TV. However revenue predictions for September and the remainder of the year are at best down 12%, cementing the fact that TV in 2009 really has fallen victim to the economic climate.

Outside of traditional TV, and on a far more positive note, emergent technologies still lead the way in generating encouraging headlines for TV. Beyond cost effective airtime, other opportunities for advertisers have developed radically. Red Button has had a well overdue overhaul making it easier on the eye and easier to use. We also witnessed the dawning of a new interactive experience when the eagerly awaited Green Button finally launched on the Sky platform in June. Although 3D TV may be on the horizon, more established yet equally dynamic technologies have provided upbeat headlines this year, with Digital take-up at nearly 90%, DVR sales rocketing, Freeview homes reaching dizzy heights, and in excess of 2m homes able to access HD content. Time-shifted viewing may well be on the rise, but it's clear TV is still our favourite collective pastime.

Although the credit crunch stole most of the headlines this year, it wasn’t all negative and dreary. TV wouldn’t be TV without a bit of controversy - this year it was in the form of the very talented, yet slightly unstable Britain’s Got Talent runner-up, Susan Boyle. Not content with dominating both our 'traditional' and 'online' screens, she also took America by storm. Other controversy included the very real threat to the SPL as a result of Setanta’s fall from grace, and the dawn of ESPN who already seem to have a better grasp on what’s needed for success than their predecessor.

In conclusion 2009 has been a turbulent time, and although we’re not unscathed, we’ve emerged stronger. Tough times have required tough measures. For agencies and saleshouses alike, thinking way beyond the norm is a formality now. Looking forward, TV is better placed than it’s ever been to deliver improved value and solutions for clients. From a market perspective things are unlikely to get worse. As soon as the larger economy stabilises, and faith in advertising is restored, I’m confident that TV will be one of the first areas to benefit. To coin a phrase from 80’s icon Yazz, ‘The Only Way is up’.

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