On Media

UK TV Advertising: structural decline or cyclical blip?

January 2007

Focusing on the future of the UK TV advertising market, PwC asks whether UK TV advertising is in structural decline or whether the recent decline is merely a cyclical blip.

The report also suggests that the reported decline in the advertising revenues of the "traditional" TV channels during the first half of 2006 is primarily a result of declining audiences and economic conditions.

We estimate that this explains some 70% of the decline in growth compared to a historical average but also that some of the decline could reflect a fall in the attractiveness of the TV as an advertising medium.