In this episode, David Sanderson explains Sky Media's addressable TV platform, AdSmart, its evolution since 2012, and why true addressability requires a residential address - not just an IP or postcode. The conversation covers Sky's position within Comcast, the enduring strength of linear TV, Sky's representation of Warner Bros., Discovery, Paramount/Channel 5, and Virgin Media, and how the fragmented viewing landscape is actually beneficial to Sky. Key themes include the three As of addressable TV (address, ad insertion, audience measurement), the importance of UK broadcast regulation for brand trust, and why digital marketers are increasingly turning to TV as PPC click-through rates decline post-LLM.

Notes

• Sky Media is part of Comcast, acquired for £38 billion in 2018; Comcast also owns NBCUniversal, CNBC, Universal Studios, and theme parks
• AdSmart launched in late 2012; originally developed to stop existing Sky subscribers from seeing "new subscriber" offers at a differential or lower price to their current package
• Over 4,000 advertisers have used AdSmart to date
• AdSmart reaches around 10 million Sky homes, with return path data from 4 million households—far larger than BARB's 5,000-home panel
• Virgin Media subscribers (3–4 million) are now part of the AdSmart addressable proposition
• Minimum campaign spend: £3,000; minimum targeting: 5,000 homes
• Over 1,000 targeting options available (affluence, home ownership, vehicle type, propensity for expensive holidays, etc.)
• AdSmart dynamically inserts ads into live TV; if viewers fast-forward or don't see the ad, advertisers don't pay
• Post-campaign measurement tracks web activity and sales matched back to households exposed to ads
• UK TV is highly regulated—all ad claims are verified by a third party (Clearcast), which builds brand trust
• TV viewing in the UK is as strong as 10 years ago; linear remains dominant (live sport, news, appointment viewing)
• Sky's share of ad-funded viewing is the largest in the UK, ahead of ITV and Channel 4; Netflix's ad tier accounts for only ~4% of viewing, Amazon's ad tier for under 5%
• Sky is testing addressable sponsorship, allowing dynamic, profile-based sponsor credits (e.g., different Volvo models for different households)
• Gen AI is lowering ad production costs, opening TV to more SME advertisers
• A joint addressable TV marketplace with Channel 4, ITV, and Comcast Advertising is planned for 2026

Episode Running Order

• 00:00 — Introduction; David's role and the evolution of Sky Media
• 02:00 — Origins of AdSmart: from subscriber segmentation to addressable advertising
• 03:00 — Sky as part of Comcast; global synergies and content access
• 04:00 — "Content is still king"; Sky's represented channels and sports rights
• 05:00 — AdSmart capabilities; tech agnostic, largest UK TV sales house
• 06:00 — TV viewing is as strong as 10 years ago; fragmentation is Sky's friend
• 07:00 — Sky's role as platform and aggregator; simplifying choice
• 08:00 — Virgin Media partnership; combined addressable reach
• 09:00 — Content creation and commissioning in a fragmented world
• 10:00 — Sky's share of ad-funded viewing; Netflix and Amazon ad tiers
• 11:00 — Why "CTV" is a misleading term
• 13:00 — The three As: Address, Ad insertion, Audience measurement
• 14:00 — Why residential address matters; postcode vs. address
• 16:00 — Ad insertion into premium content; brand safety
• 17:00 — Return path data from 4 million homes; measurement and attribution
• 19:00 — Tracking web activity and sales; integrity of residential address data
• 21:00 — How advertisers should approach the market; minimum spend and targeting
• 23:00 — £3,000 minimum; 5,000 homes; accessible entry point for SMEs
• 24:00 — Working with agencies, production companies, and brands directly
• 26:00 — UK broadcast regulation; Clearcast approval; brand trust
• 28:00 — Chinese EV manufacturers and targeting homes with driveways
• 29:00 — Brand safety and verified claims; contrast with YouTube and social
• 30:00 — The pace of change; over 1,000 targeting options; third-party data
• 32:00 — Addressable sponsorship: dynamic, profile-based sponsor credits
• 33:00 — Gen AI and lower-cost ad production; future opportunities
• 35:00 — Digital marketers turning to TV as PPC click-through rates decline post-LLM
• 37:00 — Closing; invitation to CTV summit in Spring 2026

Key Quotes

"Content is still king."

"Up until we launched our addressable initiative in late 2012, Sky was a satellite only, all or nothing national satellite footprint platform."

"Around about 4,000 advertisers have used our addressable capabilities so far."

"Sky is a wholly owned subsidiary of Comcast, which is a billion dollar turnover media conglomerate... bought Sky for £38 billion in 2018."

"TV viewing is actually as strong today as it was 10 years ago. It went up during COVID and it's come back to a level that puts it on par with about 10 years ago, which surprises lots of people."

"There's lots of nonsense in the market about the end of TV and digital taking over. The numbers just don't back that up."

"A couple of decades ago, Sky was the answer to the problem which was there isn't enough choice. Sky today is the answer to the problem which is there's too much choice."

"CTV is a massively misleading phrase... my 90-year-old mum has a telly in her kitchen which I don't think is connected to the internet, but that's one of the few TVs in the UK that are not."

"The only people who can capture a residential address in the broadcast environment in the UK are those that have a subscription contract."

"If you are after an elite brand with a very niche product that only wants to reach the top 1% of the population, you've got to buy everyone who happens to live in the vicinity of those one-percenters if you're only targeting by postcode."

"We receive return path data from 4 million homes, which gives us enormously robust information about exactly what's happening with each campaign."

"The BARB has a panel of around about 5,000 homes... 4 million data panel is infinitely big enough for us to have some really accurate information."

"Consumers know that if they see an ad on TV, that's usually on a big screen and in amazing content, that whatever claim the advertiser is making is true."

"As long as you target a minimum of 5,000 homes and you're spending a minimum of £3,000, you are in the TV game."

"We've had plenty of advertisers who started small, qualified the results and grown in confidence over the years and come back year in, year out."