ITV under fire over advertising price concerns

LONDON - Media regulator Ofcom has rapped ITV over the way it follows rules about what it can charge advertisers after complaints that it has inflated costs.

According to a report in the Independent on Sunday, David Connolly, the adjudicator in disputes between advertisers and ITV, has said that ITV has become less cooperative.

"Concern remains about specific aspects of ITV's behaviour and the adjudicator considers that this demands continued vigilance by his office, Ofcom and the Office of Fair Trading," Connolly said.

Concerns have been raised over the way that ITV has been selling advertising on its digital channels, ITV2 and ITV3 -- stations that are not governed by the Contract Rights Renewals code, which links the cost of advertising to audience share.

As the broadcaster's share of audience has been falling, ITV should be cutting its prices. However, it is reported that the company has been trying to maintain prices by offering supplemental advertising on the digital channels.

Last week, it was revealed that advertisers had also complained to Ofcom about ITV using advertising from brands that it owns to artificially inflate advertising costs at the network.

Of particular concern was the Letts Educational brand, which publishes study guides and educational literature and is part of Granada Learning, in an ITV campaign. The additional money could improve ITV's revenue figures and, therefore, artificially alter its airtime prices.

ITV is due to hold its annual general meeting this week, where shareholders are expected to ask questions over what ITV has planned for the rest of the year, after falling advertising revenues and the disappointing performance of the expected hits 'Celebrity Wrestling' and 'Celebrity Love Island'.

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