ITV considering split-screen World Cup ads as competition heats up

ITV is currently pondering the possibility of utilizing split-screen advertisements during the upcoming World Cup as discussions with Sky concerning the sale of its media and entertainment division continue, emphasizing the growth witnessed at ITVX to compensate for the decline in linear ad revenues.

In the current global scenario, mergers and acquisitions have become the norm, with leading organizations in various industries seizing the opportunity to enhance their operations through acquisitions. Major players in technology, finance, and media are leveraging this trend to expand their business networks, a trend clearly visible in the film and TV sectors. Paramount Skydance recently clinched the bid for Warner Bros Discovery, while Banijay Group and All3Media, two prominent production companies, recently struck a deal of their own. These massive mergers and acquisitions are reshaping the competition landscape for broadcasters and platforms worldwide, with ITV navigating this competitive terrain with caution.

With rumors circulating for over a year that ITV might sell its entire business or its production arm, Studios, the broadcaster’s ongoing discussions with Sky regarding the potential sale of its Media & Entertainment business hint at a transformative deal on the horizon. Though ITV’s financials reveal a slight revenue decrease in Studios and a 5% dip in ad revenues, the digital side of the business is performing exceptionally well. Digital revenues experienced a substantial 10% growth, with the broadcaster’s streaming service, ITVX, witnessing a 16% increase in viewership and a 12% boost in revenues. Digital advertising now accounts for 31% of total ad revenues, showcasing ITVX’s successful return on investment four years ahead of schedule.

Looking ahead, ITV is gearing up for an action-packed summer, with a deepened commitment to broadcasting the Fifa World Cup by showcasing an additional 19 matches compared to the last tournament. This substantial increase in match coverage is anticipated to be a major revenue driver, with live sports being identified as a key strength for ad revenues. ITV recently experimented with a new ad format during the live broadcasts of the Six Nations rugby tournament by introducing ‘picture-in-picture’ (PIP) split-screen ads. The positive response to this format has led to speculation about its potential use during the World Cup, especially during mandated water breaks that offer extended commercial opportunities.

As the World Cup draws closer, ITV has not yet finalized its decision regarding the usage of these split-screen ads during matches. Interestingly, complaints about the new format have lessened since its introduction, hinting at a possible future adoption of this ad format. ITV’s chief executive, Carolyn McCall, expressed optimism about the role of PIP ads in expanding the broadcaster’s reach and enhancing the viewing experience for audiences, emphasizing the potential benefits the format can bring to the network.