A decline in revenues could lead to a squeeze in programming budgets, which could impact audiences and further decrease ad revenue.
If the levels of viewing time hover at pre-pandemic levels and advertiser demand persist, total TV ad revenues in the UK could drop by £364 million from 2019-2027. According to an Ender Analysis report, station average price could rise by 135% by 2027.
Despite declining audiences, TV continues to be the best bet for brands to reach existing and new customers on a large scale. Additionally, the pricing mechanism for buying TV ad space is viewed favourably by agencies and sale houses.
But the future of revenue streams in the UK’s TV ad space seems uncertain. While linear deals are based on the share of budget and VOD on volume, the percentage of budget-based deals provides little certainty as far as revenue is concerned.
[4 minute read]