Brands warn privatisation may lead to budgets migrating from TV to digital
Advertising costs could rise and brands’ migration away from TV to digital could accelerate if Channel 4 is sold, according to a leading ad trade body.
The Institute of Practitioners in Advertising (IPA), which represents “the lion’s share of UK TV ad spenders” with more than 300 brands, used its response to the government’s consultation to issue a four-pronged argument for C4 to remain in public hands, as culture secretary Oliver Dowden sets out his reasons to sell the broadcaster.
It warned that privatisation risks disturbing the plurality of the ad sector, with a less competitive TV marketplace likely to drive up the unit price of TV advertising, hastening the migration of budgets from TV to online.
Director general Paul Bainsfair said the IPA “sees no upside but significant downsides to privatisation”.
“Ultimately, C4 is a success,” he added. “Its purpose-driven programming is good for society and it’s good for culture, and crucially, to the IPA, our members and their advertiser clients, it’s good for business.”
C4, which is on track to generate record ad revenues of £120m this month, offers “unique access to audiences” due to its “unique reach of light and young viewers versus the rest of the linear TV landscape”, added the IPA, which said it is “invaluable to many British companies selling products and services”.
The body, which submitted its response on behalf of the advertising industry, also pointed to the success of All 4 as evidence of C4’s “innovative approach driving the marketplace”, while citing “its commitment to diversity and inclusion that champions under-represented audiences”.
The move comes a few weeks after similar ad body ISBA also hit out against privatisation, similarly backing C4’s uniqueness as reason to keep it within government ownership.
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