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BBC online ad plan 'not satisfactory'
No decision for Auntie yet...

By Gemma Simpson

Published: Friday 23 February 2007

The BBC has been told to rethink its plan to carry online advertising on Auntie's websites accessed from outside the UK.

The BBC Trust, which governs the organisation, said it is not currently satisfied it has all the information necessary to reach a decision as to whether BBC.com should carry online ads.

The Trust has asked BBC management to investigate the matter further, looking at how advertising revenue would be reinvested in BBC Global News and the BBC's UK public services for the benefit of licence fee payers.

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BBC management was also asked to provide further analysis "to satisfy the Trust that all issues linked to potential fair trading questions have been addressed", according a statement from the BBC Trust.

The BBC could stand to make up to £105m per year if it does go ahead with a plan to put ads on its international homepage and news websites, according to an independent report filed last year.

The Beeb is looking to online advertising to make up for the fact it's not allowed to use the licence fee for international expansion online. The Trust said in a statement: "For the BBC to meet its purpose internationally, it must invest more online. It cannot use the licence fee for this purpose."

A final decision from the Trust on online advertising is expected later this spring.

Auntie has also been flirting with IPTV, and earlier this month announced its web TV plan will provisionally go ahead, despite concern from media watchdog Ofcom over how the launch will affect the UK's commercial telly.