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VIDEOGoogle's New Ad Strategy
By
Scott Reeves Mar 27, 2009 11:30 am
Brief scrutiny of today's headlines.
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The initiative is part of Google’s effort to diversify its base beyond online advertising, which now accounts for about 97% of its revenue.
Google is developing technology that would provide one-stop shopping and allow advertisers to buy ads through Google TV, a provider of on-air ad time, YouTube and videos on other websites, the Wall Street Journal reports.
The company is now testing the service with Google TV Ads Online. If successful with a small group of advertisers, the service could be rolled out later this year.
To make the new service work, YouTube, a Google subsidiary, would need longer videos such as TV shows and even movies. So far, YouTube has signed just a few deals securing full-length content, including a contract with CBS (CBS). This is new territory and some ads that run on TV may not be suitable for Internet video, suggesting that advertising formats may change in the future.
The new ad service is part of a continuing battle for eyeballs. More people are watching TV online and Google and others see a great opportunity to grab advertising dollars from traditional TV-ad bookers. But those companies and TV stations are fighting back with their own online ad services and technology to compete with Google.
Google’s new service could set the company up to sell Internet-delivered TV ads. Google is exploring the possibility of signing deals to deliver YouTube through devices that show Internet-content on TV such as Apple’s (AAPL) Apple TV.
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