ISLEWORTH, UK: News Corporation's UK satellite services monopoly BSkyB is planning to offer targeted television ads by 2011, via a system that will store relevant TV spots on its PVRs which can then be inserted in commercial breaks.

The system would require subscribers to "opt-in", and then use demographic information to target ads at different market sectors.

Speaking at the Televisionaries event organised by TV industry marketing body Thinkbox, Nick Milligan, managing director of Sky Media, said broadcasters need to "find new models or we won't be here".

He also expressed optimism that consumers would be willing to sign up for "quality advertising".

Other UK broadcasters, such as ITV and Channel 4, will have the opportunity to use the targeted service for viewers watching their channels on Sky.

Under the current proposals, the service will not be available during peak time, when programmes with the broadest appeal are generally shown.

Roisin Donnelly, marketing director of Procter & Gamble UK, has stated that targeted TV ads are her "greatest wish", but the new system could pose some challenges for the media industry.

MediaCom's head of broadcast implementation, Rhys McLachlan, says: "It would make us re-evaluate the TV trading mechanics. We would need to be able to measure the impacts.

"But we only pay for the eyeballs we get, so we are all in favour of making TV sharp and accountable."

Data sourced from Brand Republic; additional content by WARC staff