The Wall Street Journal reported in March that Google has been testing targeted TV ads with a small California cable operator in anticipation of an eventual deal with DISH Network. Today Google confirms a partnership with DISH (owned by EchoStar Communications) and Astound Cable. From the Press Center,

“Working closely with our partners, EchoStar and Astound Cable, we are currently running a trial to deliver better ads to viewers and help advertisers, operators and programmers more efficiently buy, schedule, deliver and measure ads on television.”

Using anonymized data from set-top-boxes, Google will be able to target ads by demographic, daypart and channel. Ads will be purchased through Google’s automated online platform on a CPM basis, allowing advertisers to “make changes to their campaigns as often and as quickly as they like.” CNET reports that a handful of advertisers have already signed up, including E*Trade Financial and 1-800-Flowers.

The biggest potential roadblock to Google’s TV ad program is resistance from cable networks. Google is automating an industry that has long been run on power lunches and personal relationships. Cable operators may see Google as a direct threat to their business – though Google is relying on deals with small networks in order to generate significant inventory. Despite cable networks’ hesitancy, critics universally agree that television advertising is an archaic industry. Furthermore, Google’s delivery of more relevant ads may encourage viewers with DVR units to watch ads rather than fast forward through them. Google’s promise that ads will be better targeted is one of the major selling points of its TV ad program. As Charles W. Ergen, CEO of EchoStar, states,

“Through this groundbreaking partnership with Google, we are confident we will be able to bring increased efficiencies to DISH Network’s advertising sales and more accurate, up-to-date viewer measurement with easily accessible online reporting to advertisers.”

DISH network’s 13 million viewers will provide a rich national sample for Google’s initial TV ad tests – being such a radical departure from the “traditional” way of selling TV ads, Google’s performance here will make or break their long-term vision of automating ad sales across multiple media.

This entry was posted on Tuesday, April 3rd, 2007 at 11:44 am and is filed under Advertising: Distribution, Advertising: Offline, Google, Media Convergence, Search: Video, Technology. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.