• BusinessWeek, Monday, February 16, 2009 3:45 PM

After pulling out of the newspaper and radio businesses in the past two months, BusinessWeek asks the pertinent question: Is Google TV Ads next? Probably not, is the answer, but the addressable TV advertising system still "faces a tough slog," because "a range of companies are also developing technologies that do a better job of allowing advertisers to target TV viewers." Then there is traditional media's growing suspicion of working with Google. "They're the pretty new girl in high school," says one senior ad sales exec. "We hate them for that."

With Google TV Ads, the search giant is essentially trying to bring its Web advertising system to TV, offering advertisers a self-service, auction-based system that allows them to choose the shows that best fit what they're selling. BusinessWeek uses the example of a travel agency searching Google's database of content for shows that mention "cruises." Advertisers then bid for ad placements for that program, decide what they're willing to pay, and upload a commercial. The winning commercial is then delivered directly to the TV network.

Some big advertisers, like Chinese computer maker Lenovo, love Google TV for the efficiency it brings to TV advertising. But because the big four networks have shut it out, Google TV only has partnerships "with relative small fry," like Dish Network, Hallmark Channel, Bloomberg TV and NBC Universal's CNBC, Sleuth, and Thriller. "The challenge for (Google) is scale," says Russ Klein, chief marketing officer at Burger King (BKC), which does not TV ads with Google. "We don't see anything seismic here right now."

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