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May 5, 2008
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Google: Those TV Spots Better Be Good
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by Abbey Klaassen
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New York (AdAge.com) -- If you're fretting that Google's TV Ads system will somehow commoditize the $64.4 billion the TV industry takes in ad revenue, don't. Google has a more radical notion than that.
As it does with its AdWords search system, Google plans to sell spots based not only on price but on how well an ad performs. Better-quality advertising -- advertising the audience deems most relevant -- will be rewarded, as marketers will pay less for the same spot. Lower-quality advertising -- the ads deemed less relevant by consumers -- will acquire higher media bills. Simply put, Google's TV Ads could go a long way toward answering who is responsible for bringing viewers in and who is responsible for retaining viewers, the network or the advertiser?
Such a system is still a few years away, but Google is serious about it. The company has a deal to sell ads on 120-plus cable TV networks through EchoStar's Dish Network and collect second-by-second audience ratings for the buys made through the system. Google has long asserted that some of the tools it has brought to the online world, particularly the search-advertising marketplace, could be important to the offline world. That's why it's worth paying attention when Google's top ad-sales executive, Tim Armstrong, said that the biggest change in Google's business model had nothing to do with technology but "had to do with implementing ad quality into our business model."
Click www.adage.com for the whole story.
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