The cost of advertising on TV has plummeted over the last year, according to figures from MediaVest for the period between January and August.

At leading commercial network ITV, the cost of running a standard thirty-second campaign aimed at ABC1 adults fell 13% compared with last year.

On average, the cost of a TV campaign dropped £184,000 from last year’s £1.4 million, with a 13% (£153,000) decrease for campaigns targeting adults. However, youth-focused efforts did not fall so far pricewise, registering an 8% (£104,000) drop.

“We are expecting costs to be 20% lower year-on-year by November but advertisers are still not rushing in, most are holding on to their money,” revealed Kevin West, television buying director at MediaVest. “At the moment there is some fantastic value and those advertisers which are spending are reaping the benefits.”

According to ACNielsen MMS, advertisers who reduced their TV spend year-on-year for January to July 2001 include British Telecom (down 40% to £25m) and Coca-Cola (down nearly 25% to £15m). However, government marketing arm COI Communications increased spend from £19.4m to £46m.

News source: CampaignLive (UK)