Digital is bright spot in ITV ad revenues

Digital advertising revenues at ITV are growing rapidly, helped by last year’s launch of ITVX, and the TV network plans to “supercharge” streaming in the coming year.

Why it matters

Alongside the mass reach of linear TV, ITV is now building out its targeted advertising offer via its online platform ITVX, which attracted 1.5 million new registered users in its first two months. ITV says the service is also proving effective at attracting “mainstreamers” – those lighter and younger viewers who are typically elusive for advertisers. 

Key stats for 2022

• Total advertising revenue fell 1% to £1.93bn; but digital advertising was up 17% to £343m.
• ITV’s overall serviceable addressable market has grown from £0.4bn to £5.8bn between 2018-22E [estimated], driven by the launch of ITVX and Planet V.
• Streaming hours were up 9% and viewing on ITV’s own services was up 18%; monthly average users were up 6%.
• The five largest advertising categories were retail (£370m), entertainment & leisure (£176m), finance (£149m), telecoms (£135m) and cosmetics and toiletries (£123m).
• ITV claimed a 33.8% share of the commercial viewing market. 

Q1 2023 outlook

• Total ad revenue is projected to decline 11% but digital ad revenues are forecast to increase 25%.

Key quote

“Whilst the current economic backdrop makes the whole UK ad market challenging, we expect the total market to continue growing, driven by online … ITV is well positioned now to benefit from this growth in online advertising” – Dame Carolyn McCall, CEO at ITV, speaking during an earnings call. 

Sourced from ITV