Tuesday 17 September 2019 1:05 pm

Sky and Channel 4 sign advertising deal as streaming threat looms large

Channel 4 has signed a deal to use Sky’s advertising technology as the broadcasters strengthen ties amid growing competition from streaming rivals.

The two companies today announced a multi-year deal that will see Channel 4 use Sky’s Adsmart platform to deliver targeted ads on its linear channels.

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The agreement was signed with Channel 4 Sales, the broadcaster’s advertising division, which also represents UKTV and BT Sport.

Adsmart allows brands to show different adverts to different households during the same programme based on factors such as location, demographic and lifestyle.

“We’ve long thought that collaboration benefits both consumers and the industry – today’s news does exactly that,” said Stephen van Rooyen, chief executive of Sky UK and Ireland.

“Together, Sky and Channel 4 will connect their viewers to more of the content they love, while bringing brands better ways to reach audiences.”

The partnership comes as traditional broadcasters look to fend off a decline in TV advertising and a shift in viewing habits towards on-demand platforms.

“On the face of it, a partnership looks to make the many benefits of addressable TV to advertisers mainstream whilst also offering distribution of Channel 4’s enviable back catalogue available on the Sky platform,” said Peter Mitchell, group managing director at broadcast specialists Markettiers4DC.

“However, it feels like a smart attempt to batten down the hatches from both businesses as they prepare for an onslaught of new content and platforms from the likes of Disney and Apple.”

The tie-up follows a similar venture launched last year between News UK, the Telegraph and the Guardian.

The partnership, dubbed the Ozone Project, allows brands to buy online advertising space across the rival publishers from a single site.

As part of today’s deal, the broadcasters have also renewed their content tie-up, giving Channel 4 access to highlights of the Formula 1 and live coverage of the British Grand Prix.

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In addition, Sky customers will now have extended access to Channel 4’s box sets and curated film platform Walter Presents.

Channel 4 chief executive Alex Mahon said: “This landmark new partnership with Sky is a fantastic example of how broadcasters can work together to extend the reach of our content and innovate for the benefit of both viewers and advertisers.”

Main image credit: Getty