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ITV’s 2020 growth pot: Invest more and receive more budget

Within the last 2 weeks, ITV has launched a new deal to incentivise qualifying advertisers to increase their level of investment with ITV in 2020. The proposal is to give £10 of value for every £100 you invest in ITV airtime and video on demand (VOD) above your 2019 spend.

In principle, this sounds like a great opportunity to grow TV spends and increase investment with ITV but there are several clauses within which would make us approach with caution.

Qualifying advertisers are those who have spent in cash on airtime and/or VOD advertising on ITV platforms in 2019 but excluding the following:

  1. DRTV advertisers. If an advertiser runs both DRTV and brand campaigns, the advertiser will be eligible to participate in respect of its brand advertising spend but not in respect of its DRTV spend.
  2. Advertisers who have not spent on airtime and/or VOD advertising on ITV platforms in 2019, which includes without limitation any advertisers who are new to ITV in 2020.
  3. Gambling advertisers (including without limitation bookmakers and gaming).

Delivery of additional value
The timing and mix of delivery of additional value on ITV digital channels will be at ITV’s sole discretion and will be subject to any restrictions they specify around content and/or dates.

Unless otherwise agreed and subject to timing on notification enabling delivery, additional value will be provided on ITV2, ITV3, ITV4, ITV Be.

Based on the details above, as an advertiser you would have minimal control on where any of the additional value is distributed – this could mean the majority of your investment was across your strongest performing terrestrial regions or digital stations but the additional value could be delivered on a station with a vastly different audience.

Reconciliation
With planning and station budgets heavily driven by performance, from experience, we know a lot can change over 12 months. Not only from a media viewpoint but an overall business view. If you fail to achieve the expected 2020 spend as agreed at the start of the year by 31st December 2020 resulting in an over delivery of additional value, this shall be treated as a Broadcaster Airtime Credit.

Dependant on advertiser spend levels, the over-delivery of additional value could be significant and not on core stations – the risk is that if the agreed 2020 spend is not met by the 31st December, this will then sit as an over-delivery on your rolling value position. This will then affect planning and airtime delivery from 2021 and beyond.

As an agency, we are speaking with ITV to explore whether there is any room for negotiation and flexibility on the points above to make this more viable for our clients. If you are an advertiser who is 110% confident in their 2020 budgets and strategy, then this could be for you.

Otherwise, approach with extreme caution… 

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