ITV is "scrapping for its life", the broadcaster's commercial boss has admitted ahead of an expected announcement of budget and job cuts next month.

Rupert Howell, managing director of ITV brand and commercial, made the comment as he once again called on the government to green-light product placement on British TV.

He said the extra cash it would bring in was desperately needed.

"It probably won't amount to much [to start with], but neither did sponsorship, and that now brings in £50m a year," he told Broadcast magazine.

"We are scrapping for our lives at the moment. We need every source of revenue possible – I don't care how small it is, we need it. We are counting the pennies, not just pounds. Every little helps."

The Department for Culture, Media and Sport is currently finalising a review of the European Union audiovisual media services directive, which covers product placement and is due later this month.

However, culture secretary Andy Burnham has already said he doesn't think product placement should be allowed on UK television.

MediaGuardian.co.uk revealed yesterday that ITV had frozen executive pay as it attempts to deal with the recession and a big drop in advertising revenues.

ITV is expected to announce big job cuts and budget reductions when it releases is full-year results for 2008 on 4 March.

In an email to staff last week, ITV chief operating officer John Cresswell said the advertising downturn was likely to put the commercial broadcaster under "severe strain".

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