Milly Glaister, Media Week, 30 September 2008, 3:00pm

Sky cuts cost of red-button ads

LONDON - Sky is enhancing its red-button interactive TV service, cutting the cost of the service to advertisers and launching improved functionality from 3 November.

Sky said the cost of red-button campaigns will fall thanks to a 50% reduction in interactive airtime surcharges. The announcement coincides with the launch this week of Thinkbox's interactive TV cost calculator, a tool to simplify the planning and costing of interactive campaigns, with a one-page view for all broadcaster information.

Consumers will also see an improvement in the service, Sky said, with the time it takes for interactive applications to load set to be cut. Other benefits include a streamlined menu plus improved functionality.

Despite investment from the likes of Sky and Virgin Media, interactive advertising has been viewed as less effective and more expensive than other forms of advertising.

However, Chloe Smith, head of interactive advertising at Sky Media, said: "In light of a TV market that's down, I'm really pleased with how interactive advertising has been doing." The latest figures show that 93% of Sky Digital households interact with their TV through the red button, she added.

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All Comments

Fred Perkins - 30 September 2008

Does anyone really believe this 93% figure???

Red Button "interactivity" has to be one of the slowest experiences in the modern world. OK, when "Press Red" is essential to get at some serious alternative content, like Wimbledon; but don't let's pretend that viewers are eagerly interrupting viewing to go look at adverts...

Methinks another clever bit of massaging of "research" is at play here. Sure, I "interact" via the red button - 99% of the time to page up in the EPG. Does that count?????

jamie fitzgerald - 02 October 2008

It takes a brave person to disclaim a head of interactive advertising who is privvy to the data from the largest panel in Europe. EPG is quite obviouly not counted by Sky as 'interactivity' as the 93% figure would be closer to 100%. In my experience viewers have always seeked good creative ads, these changes will encourge even more usage.

King TuT - 02 October 2008

Whilst I enjoy Red Button Interactive on satellite and it is pretty quick. I have never ever used the red button for adverts and never will. I've had satellite since the mid 1980s before Sky launched on Astra, there are many people I know who have never used Red button adverts, in fact I don't know anyone who has.

Fred Perkins - 03 October 2008

To respond to Jamie Fitzgerald: The "research" is probably derived in the same way that we've been told, definitively, that 70% of those with Sky+ boxes DON'T fast forward through adverts.

Ask yourself (if you have Sky+) and do a straw poll amongst your friends with Sky+, and see if you believe that one either.

We don't bring credit on our industry when we issue 'research' based on selective choice of data, leading to 'conclusions' that defiy majority experience.