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Tuesday, April 03, 2007

Google coming to a TV near you!

Google is entering the $65 billion U.S. TV-as-sales market. Google has announced the creation of an automated platform for ads running on EchoStar DISH Network's 125 networks. Google will gain access to DISH ad inventory from across all channels and dayparts; Google's platform will then allow it to sell that inventory and provide measurement on those buys.

The buying of DISH Network ads will work much like AdWords and use a web-based auction system. The real-time reporting allows advertisers to see how their ads performed on a second-by-second basis and adjust creative or daypart scheduling accordingly. Data will be pulled anonymously from the four million DISH boxes currently in use.

According to Google's CEO Eric Schmidt, this will allow for the ads delivered to be more relevant and therefore more valuable to the viewer and advertisers. Google will start by selling 30-second spots for broadcast networks, cable programmers and operators.

As part of the effort, Google is also launching a SpotRunner-esque program allowing advertisers to create TV ads on the fly. That toolset could attract some smaller companies that haven't tried TV advertising because of the high cost of creating those ads.

Advertisers can upload their TV commercials, bid on desired time and channel, and choose national area coverage. They can also choose to target by age demographic. The ads will be attached at the satellite operator level, not on the subscriber's set-top box.

The system is scheduled to start in May, and will sell ad space only on cable networks, including ESPN, CNN, Discovery, Lifetime, Nickelodeon and the Disney Channel. There are no national broadcast channels or local affiliates involved in the deal yet.

Television experts say the deal is a stepping stone to greater advertising control, but that Google really needs to sign an ad deal with one of the major cable networks, which are known for their ability to target ads sometimes as narrowly as neighborhood level.

Google is also reportedly planning to launch a marketplace that matches up marketers who don’t have experience creating ads with agencies that do.

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