The market doesn’t seem to have cottoned on to the potential for ITV to earn a lot more money in advertising revenue as its shares barely budged on Friday. Ofcom is reviewing the frequency and length of TV advertising given how people’s viewing habits have changed.
Previously it was considered that having longer ad breaks, and more of them, would be disruptive to the viewer. But now more people are watching programmes and films via streaming and less via live TV, so changing the advertising rules might not be so dramatic.
AJ Bell’s Russ Mould said: “ITV’s advertising revenue in 2021 was just under £2 billion so having longer ad breaks could certainly move the dial for its earnings. We’ll find out later in the summer when Ofcom updates on its review.”