21 Comments

Summary:

In an interview with Fox Business Network, Eric Schmidt said Google TV is about “building a platform with millions of people using these technologies” and that thanks to the ability to target advertising, ads on the new Google service “should be worth a lot of money.”

Television may have been around for half a century or so, but Eric Schmidt thinks Google TV can one-up regular television — at least when it comes to advertising. Why? Because it can target ads the same way Google does online, and thus make them more relevant and more valuable to advertisers. In an interview with Fox Business Network, the Google CEO said that Google TV is about “building a platform with millions of people using these technologies” and that when you have that many people using something there are plenty of ways to make money from it. “Our advertising is targeted,” he said, and therefore “we can do even more relevant television advertising, which should be worth a lot of money.”

According to Janko over at NewTeeVee, the Google CEO dodged a question about new advertising formats, saying ads would either be delivered through websites or traditional TV programming. When asked who would be threatened by the new service and related devices, which appear targeted at Apple TV as well as set-top box providers, Schmidt said he wasn’t sure. But he said cable providers would like the service because “it will drive even more internet adoption and it will get people to use their programming, which is how they make most of their money even more efficiently.”

Schmidt also said that TV “has not been reinvented in any significant way since color television was brought in in the mid-1960s,” but that now thanks to the power of the processors inside modern television sets, they can run a full web browser and “you click a button and boom, there you are with the Internet.”


Related content from GigaOM Pro (sub req’d): TV Apps: Evolution From Novelty to Mainstream

  1. Convincing advertisers that Internet TV programming is as valuable or more than the cable and broadcast TV markets will be the key to the explosion of online TV programming, and will accelerate the decline of the out-dated cable TV business model.

    Share
    1. Indeed- though I don’t think that there’s much convincing to do- targeted advertising is already a proven to be more effective than current broadcast advertising. I guess it’s just a matter of when, and not if.

      Share
      1. Not necessarily. In reality advertisers are also willing to pay a premium to reach the widest–and least targeted–audience as possible. CBS for example has been able to increase rates a lot in recent years even as its viewership has both aged and eroded because it (and the other broadcast networks) are one of the few places where you can still reach millions of eyeballs at once to create demand for a product or service.

        And there are a lot of products that almost everybody buys, like toothpaste, sedans, and banking services, where targeting is theoretically possible (and the purchase transaction takes place offline and/or far in the future), but is simply not desired unless you can determine the psychological state of the consumer with respect to consideration, something that is essentially impossible to do with behavioral data.

        Share
  2. Why is is that when Google makes an announcement, the media eats it up like candy, hook line and sinker. Wow.
    People, I’ve had this “revolutionary” service for 2 years now.
    It’s at livetv-on-pc [dot] com.
    Yawn……. Traci

    Share
    1. Because Google is a gigant, that’s why. Majority of people do not understand the subtle working of the Internetz, and they will not pay for something they don’t understand – Google makes everythinh accesible and easy.

      Share
  3. Schmidt also said that TV “has not been reinvented in any significant way since color television was brought in in the mid-1960s”

    Uhm – the switch to digital broadcasting and High Definition doesn’t count?

    Share
  4. I like this idea and I think others will like it as well especially publishers

    Share
  5. Wiil ads either be delivered through websites or traditional TV programming?

    Who would be threatened by the new service and related devices?

    No answers yet.

    I don’t think this is a “blue ocean” for Google. Other search engines will join the game sooner than they think.

    http://ethicminds.blogspot.com/

    george

    Share
  6. “But he said cable providers would like the service because “it will drive even more internet adoption and it will get people to use their programming, which is how they make most of their money even more efficiently.””

    Yeah right. Comcast etc will hate this. It puts Google in between them and their customers.

    This is a Google trojan horse designed to take down the cable companies by showing consumers internet video alternatives in lieu of cable programming.

    Google wants everything on the ‘net because they make their money through internet search and advertising.

    And actually Comcast already has a service that lets their customers watch programming on the internet and on other devices if they have a cable subscription/internet.

    Share
  7. [...] Brian Dunn onstage at the Google I/O developer conference where Google TV was announced. Not least, Schmidt later told Fox Business Network: “Our advertising is targeted,” so we can do even more relevant television [...]

    Share
  8. Very exciting news! This will excelerate the long tail theory of extending more specific content to the masses!

    Share
  9. [...] to see whether people are that interested.  And of course it means that Google will become even more adept at targeted advertisements based on search and viewing [...]

    Share

Comments have been disabled for this post