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Google tests targeted TV ads
 TMCnet Contributing Editor
After ruling the search engine space for more years than anybody can remember, Google ( News - Alert) is gradually exploring other avenues to earn more income. If all goes well, in a few years from now, Google will control which ads the cable television viewers will watch and tailor those ads according to the tastes of the consumers.
Google has been doing this successfully in online advertising arena by way of adsense, adwords and many other targeted advertising programs. The eight-year old company has raked in more than $10 billion as revenues from its online advertising ventures.
Now, it’s the turn of cable TV!
Cable subscribers in Concord have been receiving these targeted ads by Google as the company is conducting its test run here. Cable TV advertising is much bigger than online advertising and there are many established players who will be watching this move by Google with a mix of caution and curiosity.
The stakes are high. The U.S. market for TV Advertising is worth $54 billion and if Google carries on its winning habits to this new field, it’s not good news for its competitors at all
Although the test is still in its infancy; if it succeeds, it can change the way TV advertisements are created and marketed. Many other internet companies are watching these tests with great enthusiasm as they too are planning a foray into cable advertising world.
In the Concord test, Google has teamed up with Astound Broadband, a unit of WaveDivision Holdings LLC, to carry on the test runs. Google sells some of the advertisements to the advertisers and those ads will be aired along with other ads during the breaks. If this system succeeds, Google will simply buy the popular or relevant TV spots and will act as a middleman for the advertisers. This will take Google one step nearer to its goal of being a one stop solution for advertising across all media.
This effort by Google was not disclosed until recently. The test was being conducted to assess the computer and network infrastructure required by Google to broker and deliver commercials to cable systems on a wider scale. According to the sources, advertisers have to buy commercial placements through an auction system.
But unlike Google’s automated online auctioning of ads, it might have been handling the video ads auctioning manually, since the volume of auctioning will be small. Unlike the conventional method of displaying same ads in all households during the breaks, Google may use its databases with information about the demographics of a neighborhood to examine the content of the program being watched and display targeted ads.
That naturally attracts the attention of defenders of privacy. Google has faced many such accusations in its online business and it seems the online giant will have to gear up for another round of battle with groups and individuals if it forays into video advertising on a large scale. Also, succeeding in cable advertising is not going to be as easy as it was online because this is a fiercely contested field. Any attempts by Google to change the established methods of advertising will be met with stiff resistance and countless court cases.
But of course, Google knows how to handle all these!
Raju Shanbhag is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.
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