It was revealed at the weekend that advertising revenue for September was just 1.3% higher than the same month last year. The news helped to depress Granada's share price today, which fell 4.4% to 81.5p, down from a high of almost 160p last year.
Fellow ITV company Carlton Communications dropped 6.23% to 161.75p. It still has a little way to go before it hits its low of last October when it fell to around 130p, down from a high of over 350p.
Other media stocks were also sharply down this afternoon. Financial Times owner Pearson fell 5.31% to 562p; Reuters dropped 6.08% to 235.75p; and WPP Group fell 3.57% to 432p.
ITV's poor advertising performance was coupled by equally poor viewing figures. In July, it is believed to have recorded its worst viewing figures in its history.
According to investment bank CSFB: "The network is also suffering a serious loss of market share. ITV's cumulative advertising total for the first nine months of this year is down 2.9%, while television advertising for all commercial broadcasters is up 1% against the same period last year."
ITV has said that poor viewing figures are being affected by the summer, adding that the success of Channel 4's 'Big Brother', and the Commonwealth Games and World Cup on the BBC had also hit it.
The World Cup proved something of an embarrassment for ITV when it and the BBC were showing the same games. Around 13m watched the BBC when England played Denmark with just 3m watching the game on ITV.
Figures from the British Audience Research Board show that ITV attracted 22.4% of the TV audience, down from 24% in June. In July 2001, the broadcaster had an audience share of 27.1%.
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