Channel 4 is to become the latest broadcaster to take sign up to use Sky's AdSmart technology to deliver targeted ads across the network's linear TV programming.
The move is part of a bigger multi-year deal that will also see Channel 4 retain the highlights rights to Formula 1 and the British Grand Prix. The partnership will also include a carriage agreement to offer more All4 series box sets to Sky customers and a commitment from both businesses to "continue technological innovation for viewers".
Since its launch in 2014, Sky Ad Smart has delivered 17,000 campaigns for over 1,800 advertisers. Recent figures from Sky claimed that the solution, which allows brands to show different ads to different households watching the same programme, cuts channel switching by 48% and boosts ad recall by 49%.
The deal with Channel 4 means that advertisers will be able to segment viewers of shows like Derry Girls, First Dates and Channel 4 News to deliver more relevant advertising.
Channel 4's addressable TV deal with Sky will not only cover its flagship network but other properties in its portfolio; including UKTV and BT Sport.
The ads will be delivered to Sky customers and those with a Virgin Media TV package, with Virgin having joined AdSmart system to build the network's reach to 30 million viewers earlier this year.
Stephen van Rooyen, chief executive of the UK and Ireland of Sky said: “We’ve long thought that collaboration benefits both consumers and the industry - today’s news does exactly that.
"Together, Sky and Channel 4 will connect their viewers to more of the content they love, while bringing brands better ways to reach audiences. We look forward to working even more closely with Channel 4 and, we hope, other British broadcasters to bring more innovation and content to consumers over the coming years.”
As well as the ability to segment audiences by geography and demographic, there’s an additional benefit to the tech being floating by Sky; its targeting can be used to run more inclusive creative around underserved holidays such as Ramadan to audiences that have historically not been catered to.
AdSmart is also used by Channel 5 across its VOD properties.