Millions hit by stock market weakness and ITV in the picture as TV advertising rules under review

“We already knew this year’s stock market performance had been miserable but when we see headlines flashing about the worst first-half for US equities since 1970 and the worst month for the FTSE 100 since the pandemic-induced market crash in 2020, the brutal severity of the losses really hits home,” says Russ Mould, Investment Director at AJ Bell.

“This disappointing share price performance matters to more than just those who are actively trading the market. Millions of people will be affected because pension savings are typically held in stocks and shares.

“Whether you’re paying into a retirement savings pot through your workplace, or running your own personal pension, the drop in the market means your savings are worth that bit less.

“But this is not a time to panic. Stock markets go up and down, businesses go through good and bad cycles, and economic growth certainly does not travel in a straight line. The key is patience and hopefully the current state of despair will fix itself in time.


“The market doesn’t seem to have cottoned on to the potential for ITV to earn a lot more money in advertising revenue as its shares barely budged on Friday. Ofcom is reviewing the frequency and length of TV advertising given how people’s viewing habits have changed.

“Previously it was considered that having longer ad breaks, and more of them, would be disruptive to the viewer. But now more people are watching programmes and films via streaming and less via live TV, so changing the advertising rules might not be so dramatic.

“ITV’s advertising revenue in 2021 was just under £2 billion so having longer ad breaks could certainly move the dial for its earnings. We’ll find out later in the summer when Ofcom updates on its review.”

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