Sky to use subscriber data to launch ad targeting plan

by Andrew McCormick, Media Week 29-Jan-08

Sky is working on plans to build ad targeting technology that would enable it to use data from its millions of subscribers to charge more money for ads.

The News Corp-backed company has thus far been unable to find a
technology in the marketplace that offers the level of online ad
targeting it desires.

It is drawing up plans to allow it to build its own technology based on

the information it has on huge swathes of the UK population.

As of 30 September last year, the company had 8.67 million satellite TV
subscribers, while Sky claims its numerous online services attract 15.9
million unique online users, according to comScore data.

Sky wants to use the information to offer users more relevant content
and ads, according to their demographic profile.

Online media owners can earn more money from running these ads, as they
can specifically target the audience advertisers specify.

Andy Jonesco, managing director of Sky's online business unit, said: "I
do think it's realistic for us to build our own proposition. We've
started to draw up plans as to how we would wish to do it.

"However, I don't believe in using one solution because if that doesn't
work, you're back to square one."

He added that, while Sky has a vast pool of subscriber information, the
challenge is to use it effectively for marketing purposes.

He added: "We've got a lot of information that is good if we use it
responsibly and well.

"The trick is doing it in a way that the consumer feels happy that the
kind of experience they're going to get from it is a good one and a
wholesome one."

Sky uses behavioural targeting provider Revenue Science on its websites
and other sites on which Sky Digital Media sells ads.

But Jonesco said that using third-party providers was just part of the
plan.

"Ultimately, if we can't find the solution out there - and we haven't
come across it yet - we'll have to do it ourselves," he explained.

Jonesco believes Sky should develop its own solution. It will need to
pay attention to privacy and developing consumer-friendly
permission-based marketing.