• Skip to primary navigation
  • Skip to main content
  • Skip to footer
  • 020 3330 7010
  • marketing@allresponsemedia.com
  • E-mail
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube
ARM logo

All Response Media

  • Home
  • About ARM
    • About ARM
    • Meet the Team
  • Our Services
    • TV
    • Digital
      • PPC
      • SEO
      • CRO
      • Social Media
      • Programmatic
    • Offline Media
      • TV
      • TV Execution
      • Press
      • Radio
      • Inserts
      • Door to Door
      • Outdoor
      • DRTV
    • Analytics
    • ARMalytics®
  • Success Stories
    • Client Success Stories
    • TV Star Competition UK
    • TV Star Competition NL
    • Our Work With Startups
  • Content Hub
  • Careers
  • Contact Us
You are here: Home / TV / More adverts in the nation’s favourite TV shows on the way?

More adverts in the nation’s favourite TV shows on the way?

1st June 2016 by ARM Author

TV viewers watching primetime programming could soon expect to be hit with more advertising following an EU rules change which has been designed to help traditional broadcasters compete with streaming services such as Netflix and Amazon Prime Video.

Advertising is currently capped at 12 minutes per hour, or 20% of minutes; usually equating to 4 x 3min breaks. Under the new regime, this would remain at 20%, however change to a daily limit between 7am and 11pm, giving stations greater flexibility and opportunity to increase advertising minutes during their most in-demand programming.

In the UK, advertising restrictions are even more onerous for ITV1, Channel 4 and Channel 5, who are forced to limit advertising to an average of seven minutes per hour across the day, with 12 minutes in any given hour being the upper maximum. These laws are designed to give broadcasters more flexibility to maximise revenue and to ensure continued investment into producing new shows. Additionally, the EU is also looking to introduce a quota for at least 20% of EU online streaming programming to have been made locally.

All Response Media Viewpoint

This is only an option to give stations more flexibility, and will not necessarily lead to any significant changes. Additional advertising minutes during peak programming could prove counterproductive if it leads to viewers getting frustrated and impacts falling. ITV seemingly understands: “What is important to us…is striking the right balance, ensuring that our viewers are not exposed to excessive amounts of advertising and that the quality of their viewing experience is maintained.” Australia, introduced a maximum of 20 minutes per hour in 2014 which coincided with a -4% fall in impacts, the same year UK TV impacts fell -2.9%. It is likely any changes will be slow and cautious, if at all.

From an advertiser’s point of view, this poses both an opportunity and a threat. In theory, stations will reduce commercial minutes in programmes with lower (or zero) ratings, which will naturally be in daytime, and increase minutes in programming with higher ratings, predominately in peak, meaning there will be more impacts available in the market as a result.

TV pricing is based on a basic supply and demand model; therefore in the event of lower daytime impacts being available, this would result in increased daytime CPTs (cost per thousand impacts) due to lower supply and stable demand. However, on the opposite side of the CPT spectrum, increased availability in peak would result in lower peak CPTs.

For response focused advertisers, daytime TV represents the core element of their TV activity due to both cheaper CPTs delivering more efficient reach, and lower engagement programming delivering responsive behaviour. Consequently, any reduction in availability reduces flexibility to make changes, which along with increases to CPTs, so this could bring challenges.

However, this would provide an opportunity to access peak activity at a lower cost. With increased supply, but demand not increasing at the same levels, CPTs could decrease, providing advertisers with potential to efficiently expand into peak. This coupled with the fact that dual-screening has made peak more responsive means that it could help direct response (DR) advertisers to access audiences it has previously struggled to reach at a much more efficient price point.

Subscribe For More

Newsletter Signup

Footer

ARM logo

The Leading Performance Media Agency

Building businesses and brands by providing clients with an Unfair Competitive Advantage.
ARMalytics®

Get In Touch

London: Sutton Yard, 65 Goswell Road, EC1V 7EN
Phone: +44 (0) 20 3330 7000

Leeds: Marshalls Mill, Marshall Street, LS11 9YJ
Phone: +44 (0) 20 3330 8050

Amsterdam: Koivistokade 3, 1013 AC
Phone: +31 6 3761 9020

marketing@allresponsemedia.com

Privacy Policy | Cookie Policy | Modern Slavery Policy

  • E-mail
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube

Our Newsletter

Subscribe to receive exclusive media insights straight to your inbox. We respect your privacy.

Newsletter Signup

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in settings.

ARM logo
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

These cookies are essential to provide you with services available through our website and to enable you to use certain features of our website.

If you disable this cookie, we cannot provide you certain services on our website and we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.

Analytical and Performance Cookies

These cookies are used to collect information to analyse the traffic to our website and how visitors are using our website.

For example, these cookies may track things such as how long you spend on the website or the pages you visit which helps us to understand how we can improve our website for you.

The information collected through these tracking and performance cookies do not identify any individual visitor.

Please enable Strictly Necessary Cookies first so that we can save your preferences!

Advertising and Targeting Cookies

These cookies are used to show advertising that is likely to be of interest to you based on your browsing habits.

These cookies, as served by our content and/or advertising providers, may combine information they collected from our website with other information they have independently collected relating to your web browser's activities across their network of websites.

If you choose to remove or disable these targeting or advertising cookies, you will still see adverts but they may not be relevant to you.

Please enable Strictly Necessary Cookies first so that we can save your preferences!

Cookie Policy

More information about our Privacy Policy and Cookie Policy