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Google TV: Revolution Unlikely

Now that Google has officially moved into the TV ad delivery business, one overarching question lingers: Can big G revolutionize the way TV ads are bought and sold? Being the biggest force in online advertising doesn't necessarily translate into offline success--which the company proved with lukewarm results in its radio and print operations.

Indeed, the search giant's empire has been built on the backs of solid search technology and the most targeted, accountable advertising system ever known to marketers. But offline, Google lacks the same targeting capabilities. Sure, the company will be able to target ads to specific audiences, but it loses the direct-response aspects of its keyword targeting system. There will be no guarantee that viewers are seeing ads relevant to their purchasing intent.

That means Google doesn't really have much to offer that advertisers can't already get from cable companies. Time Warner Cable, for example, is testing ads with General Electric that lets consumers click through on their remote to read more and receive special promotions. Trust may also be an issue for Google. The networks won't like the fact that Google is taking a cut of their revenue--so why should they trust a company that has a vested interest in skewing their data?

Read the whole story at Business Week »

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