On 10 June 2011, Ofcom published a consultation document as part
of its review of competition within the TV advertising sector. The
telecoms and media regulator highlighted issues of concern
including concentration in the market for buying advertising,
bundling of advertising slots by sellers and the limited evolution
of a trading model which is unique to the UK sector. The
consultation seeks views on whether Ofcom should refer the market
for TV advertising to the Competition Commission for a detailed
market investigation.
The annual spend on TV advertising is around £4 billion,
which accounts for a quarter of advertising expenditure in the UK.
This revenue is essential to commercial broadcasters and public
service broadcasters, other than the BBC. Ofcom states that this
revenue affects the quality of TV content that broadcasters are
able to commission or purchase. Furthermore, there may be some link
between pricing for advertising and the price of the products
