Google Getting into the TV Business

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Brian Morrissey at Ad Week has an insightful post about Google's foray into the TV business that neatly captures the issues Google faces.
  • Google's value proposition - to bring measurement to television adverstising - works in theory.
  • Through Project Canoe the cable and satellite operators who own the inventory are already working on a competing product.
  • Google has adopted its model from measuring clicks to tracking which ads were viewed and which ones skipped - the mouse has been replaced by the remote. This means the value of the ad is - for now - reduced to knowing if the ad is being watched or not
  • Google plans to ultimately combine additional data to track purchase behavior back to an ad.
Regardless of who ultimately prevails in the race to own TV advertising the system that emerges will pose interesting problems for marketers.

  • Though TV advertising does need to be tracked, if we are measuring value only by tracking who is watching and who isn't then the pressure to develop "entertaining" ads will only grow. A likely outcome is that commercials will gravitate towards much longer formats. We'll see 2 minute commercials that tell a story, or even commercials that run like a series. Think about a 13-week series of commercials that run every week, and debut on a particular show.

  • The other issue is that the pressure on marketers to develop commercials that sell will only grow. If I were running marketing for a big consumer company I would seriously consider 2 minute commercials that feature a 1-800 number. Think Nike doing two minute spots during the Olympics, with a 1-800 number at the end encouraging people to call in to buy shoes and get a special offer to join a Nike sponsored running club in their area.
So, build the brand and prove to the CEO the direct connection between buying an ad and registering a sale.

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