UKTV’s content gamble spurs 9% share of TV advertising market
UKTV is set to reap investment rewards after strategic bets on content, distribution and the launch of its Drama channel secured the broadcaster 9 per cent of the TV advertising market in 2014.
It marks a noticeable rise from the 8.2 per cent share it had in 2013 when it channel topline growth from the period through a new growth plan. Content, distribution and new channels were identified as three strategic areas to realise the goal, leading to the strongest year for the BBC-backed broadcaster's advertising proposition to date.
Audience share for the full-year climbed 8.5 per cent year-on-year, the network’s highest ever full-year viewership, according to BARB data. Shows such as Storage Hunters smashing through into pop culture stimulated the recruitment drive with flagship channel Dave seeing its share rise from 1 per cent to 1.34 per cent for the year.
Entertainment channel Reality also played a key role in winning new audiences, seeing its share rise 20 per cent year-on-year off the back of successes such as Ghost Adventures, Paranormal Witness and Most Haunted.
UKTV's strong year-round performance was distilled over the Christmas period (22 December to 5 January) with viewing up 3 per cent year-on-year, beating Channel 5’s 2 per cent rise in the period. Specifically, Boxing Day viewing numbers were up 4 per cent on the previous year, while New Year’s Day registered an 8 per cent jump.
The broadcaster is looking to new commissions such as Undercover and Taskmaster on Dave to maintain the momentum in 2015. It will also be hoping its on-demand Play service can establish itself in a crowded market after its launch last year.
UKTV’s widening distribution and viewing streams are moving it from challenger to contender in the broadcast battle for advertising budgets. The broadcaster’s chief executive Darren Childs acknoweged the maturity of its offering last September when he predicted it would achieve 10 per cent of share of commercial impacts over the “next few years”.
Revenue for the network’s financial year were up 6 per cent to a record £278m. Profits fell 7 per cent in the period due to the costs of its investments.
UKTV’s growth has benefited from an increase in marketing budgets from advertisers. The latest Bellwether report, a quarterly survey of 300 senior marketers from the UK’s top companies, revealed that more than a quarter (25.6 per cent) had hiked their budgets from what was outlined at the beginning of 2014 compared to the 13 per cent that slashed their outlays.
The net balance, 12.6 per cent, was the third highest since the IPA began publishing the report in 2000.