BSkyB results disclose 67m ad revenue leap

BSkyB’s advertising turnover shot up in the last six months of 1996 by 32 per cent to 67m. The increase was revealed in BSkyB’s interim results last week.

Ad turnover, up from 50.5m in the same period of 1995, was still swamped by subscription revenues which rose 21 per cent to 410m.

BSkyB attributes the growth in its advertising to the quality of its target audience as well as an increase in viewing share. In the week between Christmas and New Year, cable and satellite channels took a 12 per cent share of total viewing for the first time. BSkyB’s wholly-owned channels had just over six per cent of that week’s viewing.

However, one agency media buyer maintains that BSkyB’s advertising revenue is likely to include house advertising for sister channels as well as sponsorship revenue.

The company’s results also illustrate its growing commitment to marketing.

It spent 52m on marketing in the last six months of 1996, 20m of the total on a promotion giving new subscribers a free dish and free installation. There was also a significant spend on below-the-line marketing.

BSkyB’s profits before tax were up 26 per cent during the period to 134m. Total turnover was 586m, up 26 per cent.

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