IPA Conference Brings Pan Industry Agreement
Last week’s IPA conference on communications reform resulted in pan industry agreement that competition in air time sales needs to be maintained and that the BBC should be brought under Ofcom control.
One of the speakers at the conference was MediaVest CEO and chairman of the IPA’s media policy group, Jim Marshall. He said: “We want healthy and proper competition within advertising sales for each medium and across all media.”, underlining how it was important that the Government listened to the wishes of advertisers.
Advertising, the argument runs, will be the only way it will be possible to fund and maintain a commercially viable free to air service. If spend is reduced or diverted, argues Marshal, the commercial sector could quickly become dominated by subscription and pay-per-view, creating a two-tier television system.
ISBA’s Bob Wootton softened the message slightly by saying that he didn’t see a problem with upholding the wishes of advertisers in legislation, as their interests often overlapped with those of their customers, the viewers and listeners. However, Wootton added that the BBC was taking share from commercial broadcasters, and echoed the view from several parts of the industry that instead of concentrating on ratings winners such as EastEnders, the BBC should use its licence fee money to make riskier programming choices such as Walking With Dinosaurs.
Former Culture Secretary, Chris Smith, echoed these views, saying that the BBC was “Too focused on chasing ratings.”
Ahead of Carlton and Granada’s announcement that merger talks were off, Nick Milligan, deputy chief executive of Channel 5, said that ITV should not be allowed to combine their sales operations, as this would force other major broadcasters to do the same. He also stressed the importance of competition and regulation, and as a broadcaster noted the importance of listening to both advertisers and ad agencies.
The measures the IPA has said it wants include:
The recognition of advertisers needs by Government
Enforceable rules on both advertising air time sales and those who own and control time, both within and across media.
Ownership limits for sales operations set at 25% of sales within each medium and 15% across media. If these air time sales limits are already exceeded, the IPA does not suggest forcing reductions, just not allowing further increase except through organic growth. Further, if sales percentages do increase, then a separate and independent company should handle some or all of these sales.
Competition in key regions in both television and radio. Sales regulation incorporated into the Ofcom remit.
A regulated BBC, or at least a BBC that is required to operate to a public service remit and is made accountable for its performance.
IPA: 020 7235 7020 www.ipa.co.uk
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