OPINION: Advertisers need a transparent message on ITV's merger terms

ITV is making a reasonable attempt to dig itself out of the pit of its own making. Audiences and commercial impacts are going in the right direction, dominance is being restored in prime time, and a deal on interactivity is close with Sky.

There has even been evidence of an unprecedented transparency with advertisers.

Under the cover of confidentiality ITV has briefed advertisers on both the outline and a lot of the detail of its schedule for the next 12 months.

In a highly competitive world this has involved a lot of trust. So far no-one has leaked the confidential briefing, presumably on the assumption that it is not in advertisers' interests to undermine ITV and strengthen the hand of the BBC.

There have been limits to the new transparency of ITV. On the most important matter of all - the terms for a possible merger of Carlton and Granada - it has been anything but transparent.

It refuses to acknowledge unambiguously what everyone knows: there will be no merger unless a satisfactory solution is found to the issue of the sales houses. It is hard to see a device that stands a chance of success that does not involve the full and final separation of either the Granada or Carlton sales house.

Yet the ITV bosses do not plan to admit what they are suggesting until next month at least. The storyline goes that this is such an important issue they do not want to get it wrong.

This seems just a tiny bit disingenuous. The part of the Granada-Carlton merger plan that must have received the most careful attention of all is the sales house issue. They will have already worked out a plan A, a plan B and possibly even a final fall-back position. The prevarication is obviously deliberate. The new company clearly wants to try its luck with the regulators, initially at least, without any of those messy concessions. Fat chance.

In a way both sides are holding back to see who blinks first. As the Incorporated Society of British Advertisers (ISBA) acknowledges, it is the prerogative of the merging parties to initiate the process by setting out their proposals for addressing advertisers' concerns in full and clear detail. At least ISBA has at last made clear its position that a single ITV should not be allowed if the "consequence excessive dominance in airtime sales is not addressed".

ISBA wants the sale of airtime sales on a regional basis to continue, and unsurprisingly, it wants to protect competition in the London market. There is also the danger of knock-on effects - that the other leading broadcasters will form a single sales house. This would mean ITV versus the rest, which would be unacceptable to advertisers.

ISBA has at least set down a steely message for the two big ITV companies that should disabuse them of any notion they can somehow finesse a trouble-free merger. If Carlton and Granada want to try to get regulatory approval by July when the Communications Bill, could at least in theory receive Royal Assent they could start by being a little more transparent now. It nearly always works out better than trying to play games.

Market Reports

Get unprecedented new-business intelligence with access to ±±¾©Èü³µpk10’s new Advertising Intelligence Market Reports.

Find out more

Enjoying ±±¾©Èü³µpk10’s content?

 Get unlimited access to ±±¾©Èü³µpk10’s premium content for your whole company with a corporate licence.

Upgrade access

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an alert now

Partner content