Sky Slashes Interactive Response Rates
Satellite giant BSkyB is to cut the cost of response advertising on interactive television (iTV) in an effort to drive growth in the medium, and increase the cost effectiveness of iTV campaigns.
Sky hopes to make iTV advertising more attractive in all categories, but is likely to see a particular surge in uptake amongst FMCG and DRTV advertisers. The broadcaster also anticipates more campaigns from new advertisers, entering the medium for the first time.
The new rates will come into effect on 1 November 2005, with advertisers paying just 10p for each lead generated by an iTV advertisement on Sky’s platform. The new fee represents a reduction of 80% on the current price of 50p.
The discounted rates apply to interactive ads which allow red button requests for a product sample or product information. Car manufacturers such as Ford, BMW and Chrysler have used iTV activity to extend their brand advertising, but also to engage viewers in a dialogue.
Robert Leach, head of interactive services at Sky Media explained the move, stating: “The reduction in the cost of data capture will make iTV a significantly more attractive proposition to advertisers of lower-priced products. This could even include FMCG products such as washing powder where the advertiser’s goal is to generate very high volumes of leads. It will also appeal to all DRTV advertisers and to manufacturers of lower-margin goods such as DVDs and CDs.”
Sky hosted 87 iTV response campaigns in the first nine months of 2005, with advertisers including Computeach, which has been running continuously for over 2 years.
Other users of the media are Polaris World, the Wales Tourist Board, Ultralase, NPower, ING Direct, Oceanico, Freedom Finance and Haven Holidays.
Earlier this month Sky announced plans to allow advertisers to sell goods directly to customers through interactive TV advertisements, with viewers able to purchase using a credit or debit card directly via their TV set.
Viewers pressing red during an interactive advert will now be able to leave the broadcast stream and be taken to a specially created service where credit card information can be verified using the set-top box’s phoneline (see Sky Plans Purchases Through Interactive Ads).
Sky: 08702 40 40 40 www.sky.com