It was no shock to the media world that Google has now formally announced its intention to move into the TV ad delivery business. Google has already moved into print and radio--with well-documented
mediocre results--so TV was always only a matter of time. Search Engine Land takes a closer look at its deals with Astound, a small cable TV provider in Northern California, and Echostar, owner of the
national satellite service Dish Network.
Do the numbers support Google's decision? Well, TV is still far and away the most important advertising medium, worth between $50 and $70 billion
in annual spending. The Web is tiny by comparison: $17 billion in 2006, $7 billion of which came from text-based search. TV does present the opportunity of delivering measured audience results instead
of the inaccurate sample data the industry now relies on. More than any other medium, TV is in need of efficiency and "transparency," which tech-based Google could deliver at cut-rate prices.
"Somewhat ironic is the fact that as brand advertisers start to question traditional media and shift budget online, Google is pushing offline," Search Engine Land's Greg Sterling points out.
However, intention is not enough to guarantee success for Google, he adds, as underscored by its troubles with print and radio. Whether the Web giant succeeds or fails comes down to how much ad
inventory it can gain access to, Sterling says, and just how much more efficiency and targeting it can bring to TV buying.
Read the whole story at Search Engine Land »