Channel 4 Claims It's 'Undervalued', Ups Ad Rates

22 November 2006

LONDON: In an malnourished UK ad market Channel 4 has bitten the bullet, declared itself 'undervalued' and raised its advertising rates by 5% - an act seen by onlookers as either brave of foolhardy.

C4, state-funded but dependent wholly on ad revenues, is in value terms third among Britain's four mainstream terrestrial channels - BBC1, ITV, C4 and Five. It faces spiralling debts and a potential £100 million ($189.6m; €148.03m) funding shortfall.

Ceo Andrew Duncan predicts that overall TV ad revenues this year will fall between 6%-7%. His decision to up ad rates in such a climate seems analagous to bungee-jumping with panty elastic.

Data sourced from BrandRepublic (UK); additional content by WARC staff