ITV and C4 'pitching hard' for BBC online programme ads

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ITV, Channel 4 and online sales house Ad2One are vying for a contract to sell online advertising around BBC programmes that will be worth millions of pounds a year to the Corporation.

ITV's chief operating officer, John Cresswell, confirmed that the company was bidding to sell ads for the BBC as he unveiled a 3pc increase in group revenues for the first quarter of 2008.

Mr Cresswell said: "We are pitching hard for it. The BBC doesn't have an airtime sales house so it needs to find the best person to do it."

The UK's three largest broadcasters have teamed up to launch an online library of television shows, code-named Project Kangaroo, by the end of this year.

For the first time in the UK, BBC shows viewed online will be surrounded by ads.

Kangaroo is expected to contain 10,000 hours of television, and will offer Channel 4, ITV and BBC shows to rent, buy or watch for free with advertising.

The BBC Trust has yet to give its approval, but online media experts believe that if the plan is rubber-stamped BBC Worldwide, the Corporation's commercial arm, could make millions a year in advertising revenues.

In March, viewers downloaded 17.2m programmes on the BBC iPlayer, which offers a seven-day catch-up service.

Khalil Ibrahimi, managing director of digital sales house Unanimis, says advertisers pay an average of £20 per 1,000 programmes viewed to run their promotions around online TV shows.

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ITV's websites, excluding Friends Reunited, generated revenues of £11m in 2007.

Mr Ibrahimi said: "This would be one of the biggest online sales contracts in the UK."

ITV meanwhile began to show progress towards its turnaround goals, which include doubling revenues from the content division, which makes shows for ITV and other broadcasters. The division, which was headed by Dawn Airey until her departure last month for rival broadcaster Five, grew revenues 7pc in the first quarter to £133m, due to new commissions from US broadcasters NBC, CBS and Fox.

Advertising revenues were up 2pc in the first quarter, but will be flat across the first half. This compares to a predicted 1pc decline across the total market, meaning that ITV will outperform the market across the first half for the first time since 2000.

Mr Cresswell did not rule out job cuts in 2009 as the broadcaster begins a new efficiency drive to enhance earnings and fund digital investment. Read


Source: telegraph