- BLOG BEAG –

In a move to try and maintain revenues, RTÉ has introduced a new pricing system for its television advertising that it hopes will put a floor on its ad. income stream, which has fallen sharply over the past year.

After half a decade of growth in revenues, RTÉ expects its TV advertising revenue to decline by well over 20 per cent this year. Consultations between the Advertising Institute (IAPI) and RTE have resulted in a move from the current supply and demand system where TV ad. rates are charged based on a function of ratings (supply) and revenues (demand), to a fixed rate card offering set discounts to advertisers between June and December 2009.

RTÉ has said these discounts would range from 8 per cent to 16 per cent and would be in addition to existing discounts that have been in place for some months.

From RTE’s point of view it is an attempt stabilise steeply declining TV ad sales and to try and put a floor on ad. rates.

This move is not necessarily to the advertisers advantage.

More details will follow.

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