Major advertising body pans C4 privatisation

A major advertising body which represents hundreds of brands including Audi, Domino’s Pizza, Google and Tesco has hit out at the proposed privatisation of Channel 4.

Phil Smith, director general of ISBA, which also represents FMCG giants P&G and Unilever, backed the unique role the broadcaster plays under its current ownership model and  raised concerns about the impact of a private owner on the ability of brands to reach such audiences.

“C4’s unique remit provides advertisers with highly valued, younger and diverse audiences, at scale and in quality environments, at a time when these audiences are becoming increasingly hard to reach through linear TV,” he said.

“No new owner, with a purely commercial incentive, could be guaranteed to maintain all the facets of the current offering, which contributes so significantly to media plurality and diversity in the UK.”

Smith praised the steps C4 has taken in building out its digital presence, in response to the DCMS’ concern about its ability to respond to ‘changing market dynamics’.

“C4 has led the field with its BVoD services, which again deliver brand building advertising to sought after audiences,” he said. “C4 also supports the UK’s world-leading creative sector, on which local advertising production depends.”

Smith said that a sale to either a domestic or international owner could create problems.

“The UK is already a three-legged stool and a UK buyer will cause competition concerns for the fragmented advertiser community,” Smith said. “And locally-produced content resonates with audiences. A proliferation of content created for a global audience at the expense of local audiences would also prove a concern.”

He said advertisers are worried that a sale could spark further consolidation in the market. “We are very concerned not just about the immediate impact but what privatisation might mean for the future,” Smith said.

IPA uncertainty

Meanwhile sister body the IPA, which represents advertising agencies including GroupM, Mediacom and Publicis, has urged the DCMS to provide more clarity regarding its justification for a sale.

Director of media affairs Nigel Gwilliam said the rationale for the government’s ‘preferred’ position requires further explanation.

“We have to go through a process of consultation with our membership and to inform that we would welcome guidance from government as to what it believes the benefits of privatisation would be - because they are not clear to us,” he said.

“From an advertising perspective we don’t see any obvious benefits that would warrant a sale.”