UK broadcaster ITV has announced a major cost-cutting measure aimed at mitigating a significant projected slump in advertising revenue for the final quarter. The company forecasts its Total Advertising Revenue (TAR) will fall by approximately 9% in Q4 2025, a downturn attributed to the prevailing uncertainty in the UK economy. In response, ITV has identified an aggressive £35 million (approximately $46 million USD) in temporary cost savings to stabilize its quarterly performance.
The ITV Cost Savings Advertising Drop strategy targets two main areas. Around £20 million of the savings will be achieved by moving some content programming expenditure into the 2026 financial year. The remaining £15 million will come from reducing discretionary spending and adjusting marketing costs to align with the revised content slate. These measures are designed to immediately absorb the financial impact of the softer advertising market.
Despite the headwinds in traditional advertising, ITV’s latest trading update highlighted significant growth in its strategic areas. ITV Studios, the production arm, saw revenues jump by 11% year-to-date, driven by global demand for content. Furthermore, digital revenues, fueled by the streaming platform ITVX, showed strong growth, increasing by 15% over the same period.
ITV Chief Executive Carolyn McCall confirmed that these temporary ITV Cost Savings Advertising Drop measures are expected to largely offset the predicted TAR decline for the quarter. The move reflects a proactive strategy to maintain financial stability while continuing to invest in the high-growth potential of the company’s digital and production divisions, securing its long-term strategic targets.
