Having seen continued success up to 2015, ITV was facing challenges in 2016. At the time ITV was the UK’s largest commercial broadcaster: Strategic Analysis Case Study, TBS, Ireland

Having seen continued success up to 2015, ITV was facing challenges in 2016.  At the time ITV was the UK’s largest commercial broadcaster.  The BBC, which is not a commercial organization, held the largest share of the broadcasting market.  ITV produced creative content and broadcast for different targeted audiences.  Valued at £9.6bn, its main source of revenue was advertising on its channels.

Revenues had increased steadily in the five years to 2015, to £2.972bn.  This represented a 15% year-on-year improvement in revenue and pre-tax profits to £810bn.  However, the television advertising market had become saturated and changes in the younger generation’s viewing habits meant new online media was proving more attractive to advertisers.  Possible changes to legislation related to broadcasting in the UK were being considered and ITV needed to develop a strategy to address these issues.

ITV’s Market Position.

Prior to 2016 ITV had gained its position as the UK’s largest commercial broadcaster through a unique blend of content, broadcasting reach, and advertising power.  As an integrated producer-broadcaster, ITV created value through the world-class content that it developed, owned, and distributed around the world.

The scale of its free and pay platforms and its 1bn annual investment in its programming budget attracted commercial audiences that drove its advertising revenue.  It had more than doubled its lead over its main competitors with more than double the TV advertising

revenue of public sector broadcasters, with ITV revenue at £650m, and Channel4/S4C revenue at £450m in 2015.

Television accounted for just over 24% of UK advertising spending with a growth rate of 3% per annum.  Digital media accounted for just over 50% of advertising spending with a growth rate of 9.5% per annum.