UK Edition
ITV plays catch up with launch of targeted ads on its Hub service
ITV has launched a belated attempt to meet demand for advertising tailored to consumer interests, with an update to the systems behind its catch-up service.
Since her appointment at the start of last year Dame Carolyn McCall, ITV’s chief executive, has sought to break into the market for so-called addressable advertising, which accounts for a growing share of television spending.
Such technology allows brands to target viewers based on profiles of their interests, built up through online tracking, and has gained popularity as web advertising via Google and other has come to dominate marketing budgets.
ITV had failed to invest in addressable advertising in recent years while rivals such as Sky and Channel 4 built new systems. Dame Carolyn made catching up a priority in her “strategy refresh” last summer.
On Thursday the broadcaster announced a new partnership with Amobee, a specialist based in Silicon Valley and owned by the Singaporean telecoms operator Singtel. The partnership will be based on technology acquired by Amobee in a US bankruptcy auction last year, in which ITV also bid.
Dame Carolyn said the deal, which covers only the ITV Hub catch-up service, will complement the broadcaster’s advertising business on its traditional channels.
“This agreement enables ITV to respond to our customers’ needs of frictionless targeted advertising in a brand safe environment complementing what they currently do on our channels,” she said.
The deal is part of a £40m investment this year designed to bring ITV’s on-demand services up to date with the competition for viewers and advertisers. That spending is separate to the planned investment of tens of millions more in Britbox, a forthcoming subscription streaming joint venture with the BBC.
ITV has held lengthy talks about joining Sky’s AdSmart system, which delivers targeted advertising during traditional broadcast television in homes with Sky or Virgin Media set-top boxes. However sources close to the discussions said there have been persistent differences over how revenue would be shared.
All commercial broadcasters are facing an uncertain advertising market this year, as Brexit imposes caution on marketing spending. ITV forecast its sales in March to be down 17pc on last year, when they were flattered by the timing of Easter.
It has predicted a year-on-year increase of between 6pc and 10pc this month, although Liberum analysts this week said there is a risk it will fall short due to the ongoing political crisis.