The confrontation follows the expiry last Friday of a two-week grace period during which advertisers were allowed to run their ads without a 2004 contract in place.
ITV is now insisting that media agencies sign up to the Contract Rights Renewal (CRR) deal before agreeing to continue running clients' advertising.
This locks companies into the terms and ITV share commitments in their 2003 contracts if 2004 negotiations break down. However, agencies with the biggest commitments to ITV are keen to reduce them and are attempting to exploit the new trading environment to achieve this.
Three agencies - MindShare, ZenithOptimedia and MediaCom - are going to the wire in their negotiations with ITV and their disputes may be referred to Ofcom's adjudicator. The recent transfer of the Boots business from MindShare to MediaCom has complicated negotiations for both agencies.
Although ITV is reluctant to turn away advertising, it has to hold a tough line if it is not to set a precedent in the new trading environment.
The delay in starting negotiations is due to ITV's merger, while differing interpretations of the rules have also contributed to the impasse.
Separately, Cadbury, Starcom Motive and ITV have agreed a last-minute deal that has safeguarded Cadbury's sponsorship of Coronation Street.
(Marketing, January 15). In the face of an uncompromising response from ITV, the confectionery giant has agreed a two-year deal.
The sponsorship has been struck on similar terms to last year, despite efforts to reduce the £10m Cadbury pays annually for the tie-up. ITV's tactics were supported by the knowledge that Cadbury had just invested £500,000 in sponsorship credits.
Analysis, page 17.
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