Sky explores bespoke ad rates

31 October 2014

LONDON: Advertisers can take advantage of increasingly sophisticated technology to target TV-watching households more closely but that also spells the end of traditional rate cards, a leading industry figure has said.

Jamie West, deputy managing director, Sky Media, told Beet.tv that with a product such as Sky AdSmart, "The conversation has moved on from being a commoditised rate that is transparent for all advertisers to being a bespoke tailored campaign in terms of attributes, and a bespoke tailored cost to discuss on the back of those attributes".

Since AdSmart enables advertisers to select a specific audience or even only show the ad when the defined audience is actually watching, the need to rethink pricing becomes clear.

He claimed AdSmart was gaining traction in local markets, where a business like a car dealership was thinking primarily in terms of products sales and typically comparing TV with channels such as search and direct mail. That meant competing against CPM rates of between £5 and £500.

But West said that the basics of TV advertising would remain – "big brands will want to continue to use TV exactly as they do today", as a brand building medium that offers widespread coverage.

But they could now consider "topping up" a campaign and targeting a particular segment with a different creative execution. "I can only imagine that level of targeting will increase over time," he said.

Another major change he anticipated was the joining up of platforms to offer advertisers a "holistic package that sequentially targets across that platform". That could mean, say, serving three ads in-home, followed by a VOD execution on PC and then a call to action on a mobile when the consumer was near a relevant outlet.

West argued that this approach was "fundamentally changing the role that TV can play within the overall marketing mix".

He also picked up on industry debate about effectiveness and the discussion around visibility, viewability and the impact of bots, declaring that "each and every single campaign in an AdSmart world can be assessed for its effectiveness against whatever benchmark an advertiser wants to measure it against and that is something that not all media can say today".

Data sourced from Beet.tv; additional content by Warc staff