Sky’s Media Spend Could Reach £160m

BSkyB’s total advertising spend has increased more than 30% year on year, to as much as £160 million in 2007, according to new figures from Nielsen Media Research.

BSkyB spent £115 million on above-the-line media, said Nielsen, a 60% year on year increase.

Agency estimates put BSkyB’s total media spend for 2007 at close to £160 million, up from a total of £117.4 million in 2006, and more than double the £70 million total estimated to have been spent by Virgin Media last year.

A report in the Guardian says that both companies also spend more than £20 million annually online, and tens of millions more on direct marketing.

BSkyB saw a doubling of TV ad spending, from £14 million in 2006 to £28 million last year, while press advertising was also up, from £27.7 million to £60 million year on year.

Outdoor grew by 14% to £18.8 million, while radio advertising was up 15.6% to £6.9 million.

The Guardian report attributes the increased marketing costs to the satellite broadcaster’s promotion of its ‘See, Speak and Surf’ package which combines TV, broadband and home telephone.

This week will see Sky launch its appeal against the Competition Commission’s ruling that forces it to sell most of its 17.9% stake in ITV.

Sky is taking up its right to turn to the Competition Appeals Tribunal by February 25 in an attempt to overturn the decision (see Sky To Launch Its ITV Stake Appeal This Week).

BT’s spend on traditional media rose from £64.6 million in 2006 to £69.2 million in 2007, while ITV cut its spending from £16.6 million to £14.7 million and Channel 4’s ad spending dipped from £19.7 million to 12.6 million.

Nielsen Media Research will release its annual compilation of online and direct marketing spending later this month.

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