BSkyB, the UK satellite broadcaster, is to cut the cost of response advertising through its interactive television platform to help drive the growth of the medium and the cost-effectiveness of campaigns.
From the beginning of November, advertisers will pay 10 pence per lead generated by an interactive advertisement on the Sky platform, an 80% reduction on the previous price of 50 pence charged for details supplied from the Sky subscriber database.
Sky says the move will increase the attractiveness of interactive advertising across all categories, particularly for fast moving consumer goods and direct response television advertisers.
Interactive advertising works well for high value products, such as cars, enabling viewer to request brochures or even arrange a test drive. The reduction in fees on transactions is intended to promote opportunities for interactive advertising for lower cost products and services.
“The reduction in the cost of data capture will make iTV a significantly more attractive proposition to advertisers of lower-priced products,” said Robert Leach, head of interactive services at Sky Media. “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.”