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Google TV Ads

Alex Christie

1 May 2008

While Google is already making more than $10 billion from online ads
annually, the US television advertising market is valued at around $55 billion and is still the
heart of the advertising industry.

With this in mind, Google released Google TV Ads (in Beta) in June of last
year and they have now opened it up to the public. Google TV Ads works through
a bidding system, (similar to its online offering). Advertisers indicate the
cost they’re willing to pay and they don’t pay until the ad is broadcast.

Demographics and user information is the key to the service. Satellite TV is an interactive
service so all sorts of personal information is gathered by users searching for
programming, doing keywords searches and creating custom guides. Google
purchases the TV ad spots in advance and the thinking is that they use this
personal info to determine the most appropriate screening times. The use of
this personal info is likely to raise all sorts of privacy issues, not unlike the
online issues Google faces.

The only hitch at the moment is that there appears to be only one US satellite TV
network (Dish)
that allows Google to install its tracking service. The result is Google’s TV
ads are limited to Dish’s 14 million subscribers.

It’ll be interesting to see how this develops. The age of an interactive blended
internet and TV service can’t be too far away.

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