The Telegraph has reported that industry sources confirmed the two pay-TV providers are close to a deal, with cable operator Virgin adding 3.7 million homes to the AdSmart network.
AdSmart allows brands to target TV ads at consumers based on postcode, age and income using data from credit agencies and other sources.
Sales would be handled by Sky Media, Sky’s media sales house. Sky’s own channels, as well as Viacom-owned Channel 5 and MTV, are also part of AdSmart.
Liberty Global, the owner of Virgin Media, also launched a new set-top box last year which is capable of targeted advertising and it is thought the AdSmart deal with Sky would not be exclusive, reports The Telegraph.
Sky declined to comment.