Schmidt Says Google TV Ads Will Be a Cash Machine

21 Comments

Television may have been around for half a century or so, but Eric Schmidt thinks Google (s goog) 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 (s aapl) 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

21 Comments

Elias

As a DISH employee I got the Logitech Revue pretty much the day it dropped and I haven’t looked back since. I love being able to search both my TV and the internet for shows and information, plus check my emails and Facebook during commercials. Love the innovative way this has integrated my two favorite things, both TV and the Internet! There is nowhere for this to go but up, and I think it will revolutionize TV as we know it. Eventually they will get the content because Hollywood will go where the people are…at home on the couch.

Johnny

This will be a revolution as none have seen before. Advertisers will have to take care not to make people push the botton and change like it happens on new radio. It’ll be fun…

orkut scraps

I’m hopeful but skeptical about this project. Didn’t Apple try something similar to this with their AppleTV box? I know that was to get content from the computer to the TV and not the other way around, but it was still a spectacular failure. Something tells me most people still prefer to keep their television and computer experiences somewhat segregated

Shante

The only thing that people use more than the internet is the tv. This is the best idea ever. I will defiantly be using this service.

Chris K

“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.

george kyaw naing

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

Jabba

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?

Traci Webb

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

Jay B.

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.

Michael C

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.

Duncan Leung

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.

DavidS

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.

Comments are closed.