Sky news update: the introduction of a new advertising scheme by BSkyB targeting demographics has already caught the eye of companies such as Tesco and RBS.
Advertising is something that has always had an element of the black arts about it, there are a certain number of obvious guidelines to follow but ultimately people have free choice and whether those who are targeted respond to the advertising or not is personal choice. However, given the general rule that when advertising can be tailored to certain demographics and the company reaps the rewards, Sky have developed a new level of advertising.
Tesco and RBS have already voiced their interest in the new concept and, following small scale tests, it has been announced that all homes with Sky+HD boxes will find themselves receiving tailored advertising.
This means that Sky will collect data including the subscriber’s age, postcode and gender and will then stream particular adverts to them. The idea will also work for the company to show preferential treatment to certain geographic areas, for example certain postcodes may benefit from a certain brand of supermarket more than other postcodes.
Sky News Update
Sky’s claim that this will increase the TV entertainment and advertising market may ring true in the future but for the time being the system will only be applicable to a small number of channels. Sky One, Sky Atlantic, Sky Arts, Sky Living, Challenge and Pick are the only channels currently selected to receive this specific style of advertising but this could change quickly, Sky have said that 40 companies have currently signed up for the AdSmart system.
Realistically it must be considered that the benefits of, for example, a car manufacturer who can advertise their people carrier in a home with more than one child and their two door, budget car in the home of a single person may be visible but it is not a fail-safe system. There are too many factors to take into account, what if the family with a large number of children are looking for a budget car to run alongside their larger family car? They will be excluded from receiving advertising for a vehicle of this type.
One final benefit of course is that it may appeal to those companies who have previously been reluctant to advertise on the television because it is either too broad a medium or the area that will be covered by their advert is too broad. The ability to select precisely where your advert is aired should allow for more rewards to be reaped from the advertising.
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