The ad, aired before Christmas, featured Des Lynam dressed up as "Setanta Claus" in a grotto, greeting a man who asked for "some live Barclays Premier League football please, Des".
Lynam turned to his assistant, a woman dressed as Santa's helper in a revealing yellow costume, and asked for the company's Freeview box.
When asked if he wanted anything else the man stared at the woman's breasts and said: "Couple of puppies."
At the end of the advert Tinseltoes added: "Only Setanta brings you exclusively live Barclays Premier League games on a Freeview box. Give him what he wants this Christmas."
Thirty-six viewers said it was offensive "as it objectified and degraded women and was sexist" while nine said it was unsuitable for children.
The Advertising Standards Authority said the ad "could be seen by some as treating women as sex objects" but added it was only "mild sexual innuendo".
It added: "We acknowledged that this type of humour, which appeared outdated to some viewers, would not appeal to everyone but considered it unlikely to provoke serious or widespread offence."
The watchdog noted it was not shown during children's programmes and disagreed that it should have been further restricted. It did not uphold any complaint.