In a press release, Google announced that they’ve teamed up with EchoStar and Astound Cables to deliver “Google TV†ads to the homes across 13 million-subscribers. The ads shown will be relevant to its viewers and will be targeted based on region, demographics and the content playing on the TV. Advertisers who are willing to show their ads on TV can bid on the ad slots through the familiar AdWords interface.
Mostly, viewers tune away from ads or don’t watch it fully. To help advertisers overcome this problem, they will only have to pay, if the ad was actually viewed by the audience (somewhat like the CPM model). Based on the information aggregated by set-top-boxes, Google will provide crude stats like how many times the ad was actually viewers. Google will also create a marketplace for advertisers who can’t create their own commercials.
Ambitious venture into TVs by Google, but Google is a search engine company, not an advertising company. Their simultaneous entry into Print, Radio and TV advertising makes me feel that they are going to turn into an advertising company. Perhaps, they should focus more on improving their existing products.
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