Growing the Pie: Sky say Adsmart is Bringing New Local Advertising Money into TV

Sky AdsmartSky say Adsmart, their addressable TV advertising technology, is allowing them to tap into local advertising markets previously overlooked by the TV industry. Local advertisers who have signed up include insurance group First Central and the Hampshire car dealership Hendy Group. Also, one quarter of the brands that have signed up for Adsmart are either new to TV advertising or had previously left the market.

Sky have also expanded their Sky AdSmart sales team to facilitate the local advertisers, with 18 additional roles spread across five new regional teams based in London, the South West, Midlands, North and Scotland. Adsmart has now officially launched following a six-month trial. The service can reach more than a fifth of UK households, and the ads are targeted according to a household’s profile and location. By opening up TV advertising to local advertisers, Sky say the service will expose customers to smaller, more local and less homogenous brands.

How Adsmart Works

Sky AdSmart technology first sends a library of adverts via satellite to the Sky+HD set-top box, so all of the ads are stored locally (presumably this helps reduce any latency issues). It then selects the ads which best match a household’s profile and inserts them into a live ad break, and the ads are targeted according to a customer’s postcode alongside publically available demographic information from third-party providers including the data services company Experian.

Managing Privacy

Sky contacted its TV customers by letter in 2011 to inform them of the benefits of Sky AdSmart and giving them the option to opt out of receiving the service. With Sky AdSmart, Sky customers see adverts that are more likely to be of interest to them and fewer that are not relevant.

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