Wednesday, April 4, 2007

Google Starts Selling TV Ads

NEW YORK -- E*Trade, Intel and 1-800 Flowers are among the first advertisers on board for Google’s move into national TV ad sales, which was made possible by a deal with satellite provider EchoStar।Under the agreement, announced today, potential advertisers can use Google’s ad-purchasing system to bid for TV ads on a cost-per-thousand viewers basis on EchoStar’s DISH network. Advertisers can also narrow their query by bidding by daypart and even by demographic. Afterwards, they will get data on the number of impressions they bought and about how many people skipped the ad within 10 seconds. If advertisers don’t already have a completed TV ad, Google will also match them up with producers of ads.Google’s foray into TV ad sales has long been expected in the industry since it began adding print and radio as additional options to online ad sales over the past couple of years. Google has also tested TV ad sales with Astound Communications, a Concord, Calif., cable operator, but the EchoStar deal is its first with a national reach.Keval Desai, director of product management at Google, said TV is becoming like the Web. “In the mid to late 90s there were lots of Web sites and audience fragmentation. The same thing is happening in TV.” Desai said he believes that advertisers will benefit from TV channels with smaller, but more targeted audiences.Peter Kim, an analyst with Forrester Research, Cambridge, Mass., said Google’s going to have to deal with the same problems as other TV advertisers, namely ad-skipping devices like TiVo. “It’s still a huge market, but they’ve got to start figuring out a market where people are avoiding ads. [Google is] already in the market that everyone wants to be in, online.”

source: brandweek.com

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