The minister wanted to get rid of it, but the Ster advertising is making a comeback

De Ster made considerably more money last year: a profit of 187 million euros on a turnover of two hundred million. That is 34 million more than the year before. The foundation that provides advertising for the public radio and TV channels thus paid almost a quarter of the costs of the public broadcaster (792 million euros). The range of commercials in the second half of the year was so overwhelming that the Ster had to sell no and pay back money to advertisers who no longer fit the commercial breaks.

But despite this success, director Frank Volmer sounds the alarm. In the 2021 annual report, which appeared on Friday, he states that the restriction imposed on him by the government will cost the viewer more money in the future, and could ultimately mean the end of the Star. Since last year, De Ster is no longer allowed to advertise online or in children’s programs. That saved twelve million in revenue. And within five years, the Ster must halve the advertising time from ten to five percent of the broadcasting time.

Like watching television, television advertising seemed to be on the decline. So why this high turnover? In the Sterkantoor in Hilversum, Volmer explains the figures: “The advertising people are somewhat reticent about bringing unbridled money to the American tech parties. They return to the idea: ‘everything is effective on the Internet’. Their search for effective advertising leads back to television.” The sharp increase in profits compared to 2020 should be put into perspective: that was a disastrous year. Due to the pandemic, profits in that year fell by twenty million to 153 million euros.

Volmer: “Indeed, 2020 and 2021 are strange years. Corona affected everything, including watching television. In the first three months of the crisis, no one wanted to advertise anymore; many industries such as hospitality and travel agencies were out of business. But they soon realized: you should not be absent from TV for too long, because then people will forget your name. So we saw the travel companies come back, advertising ‘keep dreaming about vacations’. Supermarkets, on the other hand, achieved record turnovers, which are still the largest group of advertisers.”

With the turnover, Ster is back at the level of 2016, the time when the income started to fall and fluctuate, after which the minister sounded the alarm and decided that the public broadcaster should become less dependent on advertising. Incidentally, less advertising time does not immediately mean less income, explains Volmer: if supply remains the same, there will be even more scarcity, which drives up the price per TV commercial. In the coming year, he expects relatively more supply and less space, and therefore higher income, especially around the European Championships for women’s football and the World Cup for men’s football in the winter – tournaments that are popular with viewers and advertisers. Volmer: „What is special about that last tournament is that it does not take place in the summer, but in the months when there are already a lot of viewers, which drives up the price even more. Women’s football is popular with advertisers because it evokes a very positive feeling among viewers, more so than men’s football. Moreover, the viewership is much more balanced: half men, half women.”

Politicians want less advertising

But the government’s restrictions have a dampening effect, he says: “Especially the decision of the previous minister to limit us digitally. We only place online commercials of public benefit institutions, such as museums and the government. That’s one and a half million. Without that restriction, it could have been as much as 15 million—just enough to fill the gap that will be cut by the halving of TV commercials. In the long run we will miss out on fifty million a year with this.” He finds the worst: “You have to be in the place where people move to, in other words to online video, and that is not allowed. In the long run, this is a very serious problem.”

Also read: Record TV advertising turnover of 903 million euros thanks to corona

Politicians and others argue that a public platform should be free from advertising, not only because it is more pleasant for viewers – who already pay for the public broadcaster through the tax – but also to protect the broadcaster from commercial incentives. Volmer thinks that is nonsense, however: “That the public broadcaster would make programs to collect advertising money? Those who say that are crazy, who also believe that we are controlled by Martians.” Advertising has a social function, he argues, and contributes to society. “The business community and social organizations are also part of the country and therefore deserve a place on the public broadcaster.” According to him, research shows that viewers do not find advertising annoying at all: “At least, if it is too much, too often and interrupting. But it’s nonsense to pretend advertising isn’t fun. If you were to ask viewers, “Would you like to keep the commercial, or would you rather pay more yourself?” then they will all choose advertising.”

What bothers Volmer is that the government parties that fought for a restriction on TV advertising, Christenunie and D66, were themselves the largest customers for political commercials during election time. He hopes to find more understanding from the current government. “I would like to propose in The Hague that we pay a limited amount of two hundred million per year from now on and that we agree with the NPO ourselves how we can fill this in, with as little advertising and irritation among viewers as possible. I would like politicians to think better about the contribution we make to public broadcasting.”