ITV1 hit by 12.5 per cent advertising switch-off

BROADCASTING firm ITV today reported falling advertising revenue on its flagship channel ITV1, home to hit show X Factor.

The company, which has just appointed former BBC director-general Michael Grade as chairman, said net advertising revenues had fallen 12.5 per cent at ITV1 during the last 12 months and by three per cent at breakfast station GMTV.

But in a trading update ahead of its full-year results, ITV said trading was in line with forecasts, and its investment in programmes next year would be similar to 2006's level.

Interim chief executive John Cresswell admitted the advertising market "remains challenging".

The firm, which was recently the subject of a bid approach, said net advertising revenue was higher than expected under the Contract Rights Renewal mechanism, allowing an advertiser to change the amount of airtime they take out in line with any change in ITV's audience share.

It said the performance partly reflected strong growth from regional television advertising, compared with BBC1's 24.5 per cent.

ITV added that ITV1 remained the most popular channel in the UK, with a 27.3 per cent average peak share of the audience.