Sky Considers Plans To Enter Ad Production Market
BSkyB is considering plans to expand its in house advertising unit to make cut price commercials for outside clients, in a bid to lure more brands to TV.
According to reports in the Financial Times, managing director of Sky networks, Dawn Airey, wants BSkyB to target companies that regard television advertising as too costly to pursue. She said: “Instead of trying to make an ad for £30,000, we can do it for a fraction of the cost. We are not getting into the agency business we are trying to induce new clients into television.”
She added: “The enticement is to increase the amount of spot advertising revenue we take.”
Driving advertising revenues is one of four priorities for Airey in her new position. According to the FT, her other goals are: reversing a drop in BSkyB’s premium movie channels, broadening the audience of Sky One and maximising cross-marketing between Sky’s channels.
Airey also revealed that BSkyB may consider an ad sales house partnership with Five if Carlton and Granada’s planned £2.6 billion merger is cleared by the Competition Commission (see Carlton And Granada Enter Advanced Merger Talks).
She went on to demonstrate her commitment to BSkyB’s bottom-line and moved to quash rumours that she is planning a significant increase in original programming. Sky’s often quoted plan to reduce US acquisitions from their current level of 70% appear to have been put on ice for the immediate future.
Airey joined Sky last year, leaving her previous position of chief executive of Five in a move which shocked the industry (see Airey’s Departure Represents Coup For BSkyB). It had been widely expected that Airey would join ITV as either chief executive, or as director of channels following the departure of David Liddiment (see Liddiment Quits ITV Director Of Channels Role).
BSkyB: 0207 705 3000 www.sky.com
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