Media agencies have reacted angrily at the fact that state broadcaster RTE have put a ‘floor’ on the amounts ad rates can fall between now and the end of the year.
The new system will see RTE offer ads for the second half of 2009 at fixed discounts to the amounts charged in 2008.
Ad rates were previously set by supply and demand, which prompted an unprecedented collapse in rates during the first quarter.
Rates at TV3 are bench-marked against RTE’s, so the new scheme will effectively dictate rates across the spectrum.
“The way things are at the moment really aren’t to anyone’s advantage because there’s too much volatility,” according to RTEs Geraldine O’Leary. “What we’ve done now is predict the amount the market will fall by for the rest of the year and we’ve nailed our colours to it. It gives certainty to us and our clients.”