• by David Goetzl , September 9, 2008

Google's foray into providing a platform for purchasing TV time will now include inventory on a range of NBC Universal-owned cable networks. Under a new agreement, advertisers using the automated Google TV Ads system will be able to buy spots on the Sci Fi network and MSNBC, among other channels.

The announcement was made after the stock market closed Monday by Mike Pilot, president, NBC Universal sales and marketing, and Tim Armstrong, Google's president of advertising and commerce, North America.

Google TV Ads uses an auction-based system, in which advertisers don't have to interact with a sales force--marking a major shift for NBCU or any network. Instead, they will use an online interface; meaning, they can bid on inventory that fits their desired specifications, such as target demo, daypart and network, and receive reports on the spots' ultimate performance on a second-by-second basis. Advertisers can then swiftly make adjustments to their campaigns.

The deal comes as the Justice Department may be preparing an anti-trust suit against Google, alleging that it has gained too much control of the Internet advertising market (particularly search) through a recent deal with Yahoo, made as Microsoft appeared to be closing in on a purchase of Yahoo. The Wall Street Journal reports that the department has hired a former top Disney executive, attorney Sanford Litvack, to oversee the case.

So far, the Google system has been used primarily to sell time on cable networks carried on satellite provider Dish Network (Google TV Ads also manages some time on a small California MSO). Dish's set-top box data allows for the near real-time ratings reports to the advertisers.

It appears that the set-top box data from Dish will be used to help generate the ratings reports and performance metrics provided to advertisers that buy the national spots on NBCU properties. Dish, however, serves a limited number of homes, so there would be some extrapolation.

NBCU said it will allow the Google system access to time on six networks--which include Oxygen and CNBC, in addition to Sci Fi and MSNBC. Also included are the lesser-distributed Sleuth and Chiller. Not included are the NBC broadcast network and popular USA and Bravo cable networks.

NBCU, however, can determine what inventory it allows Google to place up for bid, so election-night coverage on MSNBC--and other premium prime time openings--is unlikely to be available, while overnight inventory on, say, Chiller likely would be.

Over time, advertisers may also be able to buy time on NBCU's group of local stations under the agreement.

The deal is a revenue-sharing arrangement between the two partners. NBCU's involvement is curious from at least one standpoint. The company stood with its cable brethren to fiercely resist a recent advertiser-supported initiative to launch an eBay-enabled online buying and selling system for cable time. Many networks felt the system would turn their inventory into a commodity.

While no doubt attracted by the opportunity to partner with Google, NBCU surely views TV Ads as an opportunity to facilitate the sale-- and garner higher prices--for the less-appealing, low-priced ad time during the hundreds of hours of programming a week across its cable channels.

NBCU's Pilot said TV Ads "will help us ... attract an entirely new group of clients to television advertising." Google has billed the system as an easy-to-use venue for first-time TV advertisers that don't have the budgets to hire national ad agencies (creative can be uploaded directly through the system).

As part of the agreement, NBCU will have some exposure to the hordes of advertisers using Google's popular AdWords system--buckets of which don't advertise on TV--and then be able to approach them. This could be particularly helpful for its local stations that are seeking to break into new categories to help replace revenue losses from the struggling auto sector.