Ofcom launches review of TV advertising trading

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On 10 June Ofcom has launched a review into the UK’s TV advertising trading market. The review will establish whether the way TV advertising is currently bought and sold prevents, restricts or distorts competition, and whether this has a harmful effect on consumers. The possible prevention, restriction or distortion of competition has the potential to negatively affect both advertisers and TV viewers. If competition is distorted it may be affecting the allocation of advertising revenues across broadcasters; market innovation; and prices for placing advertisements. If Ofcom concludes that there are sufficient competition concerns, it will decide whether to exercise its discretion to refer the sector to the Competition Commission by the autumn for a competition investigation into the TV advertising market. Advertising is critical for financing TV content for many broadcasters, and is the main source of revenue for commercial Public Service Broadcasters. TV advertising remains a powerful medium for advertisers and the sector is worth around £4bn a year. Here to read more.

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