The service can to store more than 500 ads on Sky+ set-top boxes and tailor them to households based on age, gender, income, and 64 geographical regions. Sky claims that a quarter of brands which have signed up so far are either new to TV advertising or had previously quit the market.
It has also been claimed that the scheme could soon be rolled out to other channels and mount a major challenge to digital budgets. The TV advertising sector is worth around £3.5bn a year; online spend is predicted to have topped £5bn during 2013.
The company says it has settled privacy concerns associated with AdSmart by contacting its customers by letter in 2011 to inform them of the benefits of the service and giving them an option to opt out.
Andrew Griffith, Sky’s managing director, commercial businesses and chief financial officer, said: “With Sky AdSmart, we want to make TV advertising work better for viewers and advertisers. By enabling advertisers to better segment the TV audience, Sky AdSmart has the potential to open up TV advertising to many more brands and businesses. This helps both the brands that previously thought TV too broad a medium, as well as local advertisers who felt that TV wasn’t previously accessible to them.”
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