Pandemic bounceback puts ITV on course for record year of ad revenues
ITV is on track to enjoy the best year for advertising revenues in its 66-year history as businesses pour money into marketing to drive a post-pandemic recovery, while content such as the Euro 2020 tournament proved a hit with viewers.
The UK’s biggest free-to-air commercial broadcaster said it was performing more strongly than in 2019 before Covid-19 hit, with total advertising revenue for the first nine months rising 30% year on year to £1.3bn.
The company expects total ad revenues for the year, including the growing income from ads on its streaming service, ITV Hub, to be up by 24% compared with 2020 to hit an all-time high.
The period in the run-up to Christmas is expected to be even better, with record amounts forecast to be spent on advertising. ITV said that in final three months of the year – when it usually makes about 30% of its annual ad income – will be up as much as 13% year on year.
“2021 looks set to have the highest revenue in ITV’s history,” said Carolyn McCall, the chief executive of ITV. “By any standards ITV has had an outstanding nine months.”
Total revenues including ITV Studios, which makes and sells shows such as Coronation Street, Line of Duty and Come Dine With Me, rose 28% year on year to £2.38bn in the first nine months of 2020. This is 8% higher than in 2019.
“Revenue from each business is up both on last year and 2019,” said McCall, who said content spend would hit £1.16bn next year because of programming including football’s World Cup and investment in dramas.
The broadcaster said the share of total TV viewing taken by its main ITV channel increased in the first nine months. However, total viewing including across its digital channel portfolio fell 5% year on year.