Media: All about ... The BBC's marketing activity.

On-air campaigns will be hit as the Beeb makes cutbacks.

You know that times are hard when the BBC is making cutbacks. Unlike its commercial rivals, the state-owned broadcaster has some pretty cosy financial insurance in the shape of a licence-fee settlement that runs until at least 2013.

With a guaranteed income stream linked to inflation, the BBC can, arguably, make hay while its rivals count the costs of the dramatic advertising storm. Yet, its settlement with the Government came at some small cost and it has been making savings across its business in a bid to demonstrate value for money to the taxpayer.

Last week, it emerged that these cutbacks would extend to the BBC's pounds 100 million marketing budget, with reports suggesting that the Corporation would seek to cut this back by 25 per cent by 2012. The budget will fall by 20 per cent in the current financial year.

The pounds 100 million figure relates to the entire budget of the BBC's marketing, communications and audiences division, which, in addition to advertising in all media and the BBC's own on-air promotions, encompasses such areas as corporate events and PR.

It seems that large-scale corporate branding initiatives such as the 'Perfect Day' activity of the late 90s and the 'this is what we do' campaign created by Fallon three years ago could become a thing of the past.

The BBC's large number of on-air campaigns, which so rile commercial broadcasters because they are often used to cross-promote services such as radio via the BBC TV channels, will also be cut back.