michael21
26-05-2010, 10:41 PM
Sky is reportedly ready to deliver its new targeted live advertising system, but is delaying the launch due to a possible backlash from consumers.
The satellite broadcaster's new AdSmart system is able to deliver targeted ads during live broadcasts to homes based on their subscription package, location and other criteria.
According to a report in Marketing Week, sources indicate that AdSmart is ready to roll out, but Sky is holding back on the launch due to fears about potential criticism over privacy concerns.
Current data protection law restricts the level of targeting Sky can use within advertising, but that has not stopped targeted ads from being a contentious subject.
In July 2009, BT and TalkTalk dropped plans to roll out the controversial targeted advertising technology developed by Phorm, although both firms stressed that privacy concerns were not a factor in the decision.
Virgin Media has also tentatively explored various options for targeted advertising on its video on-demand platform, including initial talks with Phorm.
Last year, Sky agreed a deal with Experian for the firm to oversee its customer insight activity, including the AdSmart system. It is understood that AdSmart matches ads by using data from a panel of viewers covering a broad range of demographic factors, including age, sex, subscription package and location.
Matched ads are then allocated to households via unique identifier numbers in Sky+ HD set top boxes. Sources claim that the system is ready to go and could deliver ads, but Sky has denied that a launch is imminent.
Jeremy Tester, director of brand strategy and communications at Sky Media, said that the software inside Sky+ HD boxes is not yet ready for AdSmart.
"There is middleware inside the set top box that is not yet ready to deliver live targeted ads," he told Marketing Week.
"We do plan to test systems towards the end of 2012, taking it to market in 2013."
Tester did admit that AdSmart was already in operation on the Sky Anytime video on-demand service.
He also feels that there is an around £80m market in local and regional advertising spend that Sky could tap into when the live ads system launches.
The satellite broadcaster's new AdSmart system is able to deliver targeted ads during live broadcasts to homes based on their subscription package, location and other criteria.
According to a report in Marketing Week, sources indicate that AdSmart is ready to roll out, but Sky is holding back on the launch due to fears about potential criticism over privacy concerns.
Current data protection law restricts the level of targeting Sky can use within advertising, but that has not stopped targeted ads from being a contentious subject.
In July 2009, BT and TalkTalk dropped plans to roll out the controversial targeted advertising technology developed by Phorm, although both firms stressed that privacy concerns were not a factor in the decision.
Virgin Media has also tentatively explored various options for targeted advertising on its video on-demand platform, including initial talks with Phorm.
Last year, Sky agreed a deal with Experian for the firm to oversee its customer insight activity, including the AdSmart system. It is understood that AdSmart matches ads by using data from a panel of viewers covering a broad range of demographic factors, including age, sex, subscription package and location.
Matched ads are then allocated to households via unique identifier numbers in Sky+ HD set top boxes. Sources claim that the system is ready to go and could deliver ads, but Sky has denied that a launch is imminent.
Jeremy Tester, director of brand strategy and communications at Sky Media, said that the software inside Sky+ HD boxes is not yet ready for AdSmart.
"There is middleware inside the set top box that is not yet ready to deliver live targeted ads," he told Marketing Week.
"We do plan to test systems towards the end of 2012, taking it to market in 2013."
Tester did admit that AdSmart was already in operation on the Sky Anytime video on-demand service.
He also feels that there is an around £80m market in local and regional advertising spend that Sky could tap into when the live ads system launches.