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The move is part of what is being described as a "bloody" negotiation round for ITV, as the annual TV discussions near their close.

Agency sources suggest the share of advertisers' TV spend going into ITV this year has dropped by as much as 3% from its 2002 level of around 54%. Investment in TV follows audience performance and ITV is suffering from a poor start to 2002, partly caused by problems with the Barb panel.

Also, the growth in digital channels and Five's good performance mean these are in a strong position to demand a greater share of ad money.

ITV's standard response to advertisers and agencies that take money away from the channel is to reduce the discount they enjoy. But this year agencies and advertisers stand to lose less of their discount if they commit to spending between 0.7% and 1% of their total TV spend on ITV2.

The figure represents a significant increase in the amount advertisers and agencies have traditionally spent on ITV2. Until now advertising on ITV2 has been largely bought on informal arrangements, with agencies spending a certain volume of money rather than a share of total spend. The amount has rarely exceeded 0.3.% of advertisers' total spend on TV.

ITV sales houses have defended the move, saying ITV2's improved audience performance justifies the increased commitment being sought. The channel costs around £45m a year to run and pulls in between £12m and £13m in revenues. Since being available on Sky Digital in the past year, the channel has boosted its reach, despite ITV Digital's demise.

According to ITV's figures, in September 2001 before it launched on Sky Digital, ITV2 had a 16% reach among 16-34s. By September 2002, now available on Sky, this had risen to a 58.6%.

COMMENT

The decision by ITV sales houses to seek a share of broadcast for ITV2 reflects their determination to push it as a channel in its own right.

The low prices at which it has been sold to date means that advertisers and agencies may not give it the recognition it deserves. Agencies remain sceptical, however, and, unlike ITV1, which remains advertisers' sole option for mass audiences, there are plenty of alternatives to ITV2. The challenge for ITV2 this year will be to deliver in spades against any increased investment.