Brands plan to slash linear TV spend

More than two-thirds of advertisers plan to cut their spend on linear TV next year, according to a survey by UK advertising body ISBA.

The study, conducted with media analysts Ebiquity, has uncovered the impact of the recession on major brands’ spending plans after assessing 59 companies, which collectively invest more than £1.5bn in advertising.

Linear TV spend is predicted to be hardest hit, with 20% of respondents anticipating a significant decrease of 10% or more and a further 47% expecting a decrease of 0-10%.

Some 30% expect their linear TV spend to remain flat and just 9% project a slight increase.

Overall, 40% expect to cut spend on ‘offline media’, which encapsulates TV, radio, print and outdoor.

The companies, which includes three of the top 10 spenders and 11 of the top 50, agreed that budgets are under heavy scrutiny, with marketers required to justify investment.

The predictions will be disappointing for commercial broadcasters, but they will be able to take some heart from the prediction that more than half (53%) of the brands surveyed plan to increase investment in connected TV services.

This is likely to include the likes of ITVX and All 4, as well as Disney+ and Netflix’s advertising propositions.

ISBA director general Phil Smith said the effect of the recession was clear from the results of the survey.

“While there’s a fine balance between the number intending to concentrate more on investment in brand and those spending more on performance, there’s a general shift towards more flexibility of commitment and a significant swing towards digital delivery in every medium,” he said.

Ebiquity chief exec Nick Waters added that brands are building more short-term flexibility into their plans.

“Evidence from past recessions demonstrates that brands which continue to invest for the longer term gain market share and emerge from the downturn faster and stronger,” he added.