Sky counts the cost of advertising

The very public battle between Virgin Media and BSkyB has created a very aggressive market for the TV, Broadband and Telephone sector.

In fact Sky’s advertising spend has increased by a massive thirty per cent to an estimated £160 million for the year 2007.

Most of the money around £115 million, went on traditional advertising such as TV, Press, Radio, Cinema and Outdoor advertising facilities. This is an increase on the year of sixty per cent.

On the other hand, Virgin Media spent just £50.5 million on traditional advertising, which is considerably less. It is not known as to why the cost is so high for BSkyB it can only be down to the amount of advertising that they are doing, whereas with Virgin the advertising is more targeted.

Both companies spent more or the less the same however in online advertising this around the £20 million mark for both companies, and the rest has been used in direct marketing campaigns.

Although both companies have used very different campaigns, the results have been very similar, which prompts the question as to if all of the money is necessary to find new customers, they would both say yes, no doubt.

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