Static Clouds Google TV | Adweek Static Clouds Google TV | Adweek
Advertisement

Static Clouds Google TV

Advertisement

By almost any measure, Google is an extraordinary success -- except when it comes to traditional media.

After launching ambitious plays to digitize the radio and print businesses in recent years, the search giant eventually bailed on them. Now, several media executives are wondering about the company’s long-term commitment to its fledgling Google TV business. “I think 2010 is a make-or-break year for Google TV,” said Tracey Scheppach, svp, director of video innovation for SMG. “A lot of people are wondering what role it will ultimately play for Google -- big, small or not at all.”

Scheppach and other media buyers said that while Google TV has always carried tremendous potential, it has seemingly failed to gain traction over the past several years, leading some to question its business model. Essentially, Google sells TV avails using data from set-top boxes deployed by its partner Dish Network, as well as data from TiVo and Nielsen’s Claritas. It claims to offer advertisers better targeting and down-to-the-second viewership data.

Mike Steib, Google’s director, emerging platforms and TV ads, said that the company plans to remain in the TV business for the long haul. “We are endeavoring to solve big problems,” said Steib. “We are getting inventory that is undervalued and making it more valuable to the owner and the buyer. Google has the stomach for this…if we’re not adding value, they’d pull the plug.”

Like Google’s core AdWords business, inventory is sold via an auction. But according to Rob Norman, CEO of GroupM's Interaction, Google TV has a hard time living up to what AdWords can do since TV is still not as data rich, nor as digital, as the Web. “What Google is good at -- the matching of actual or implied intent with relevant messaging -- is really hard [on TV],” said Norman. “As a result, it’s hard to get very excited about the proposition, even if you are a long-tail advertiser. Only a mug writes Google off, but I don’t see their efforts as transformational in the short term.”

There’s little doubt that the TV business could use some transformation. But Google TV may be taking that effort too far too fast by insisting on an auction model.

“I don’t believe the TV marketplace is ready for that,” said Scheppach, who contends that just utilizing basic set-top box data to improved targeting would represent a major step forward for the business. But Steib insisted the auction model allows Google to optimize its data in a more timely fashion that’s better for buyers and sellers.

Continue to next page →