Google TV Ads and Google Core Belief
Google is working to resolve the conflict between Google core belief that people should see ads that they want to see and TV ads which are for general mass communication.
Google is working to resolve the conflict between Google core belief that people should see ads that they want to see and TV ads which are for general mass communication and are “based on feeling and emotion”.
According to Eric E. Schmidt, Google’s chief executive, advertising should be interesting, relevant and useful to users. He believes in showing the right ad for the right person so that the click through rate increases and the ad revenues increase.
According to him this proposition is applicable to other media. “If we can figure out a way to improve the quality of ads on television with ads that have real value for end-users, we should do it”. He quoted an example from his personal preference and said, “Why do I see women’s clothing ads? Why don’t I see just men’s clothing ads?” [source]
According to Schmidt direct marketing, which involves reaching out to customers directly is three times the size of television ads. Google is fucussing now on that big market and will come to television last.
Schmidt on Ads in general: “If my rental car knows who I am, why can’t we program the radio to give me the ads that I want? If I have to listen to ads on the radio, they might as well be the ones that I want to listen to”. [source]
Forrester Research estimated that 75 percent of national advertisers planned to cut spending on TV commercials by at least 20 percent in the next five years. This was because advertisers believed that ad-skipping devices like TiVo will be widespread.
Using TIVO’s video recorders consumers can skip commercials. They can also watch the commercials they want to watch. “TiVo has deployed an ad system that is based on voluntary viewing of long-form video advertisements”. [source]
There have been reports for the last few months about Google and Yahoo interested in striking a deal with TIVO.
“For example, a TiVo deal might allow Google or Yahoo users to find video files on the Web and then watch them on their televisions.
Web surfers might provide some personal information, including their TiVo serial box number, in order to download video directly to their TiVo box.
TiVo would collect a share of the fees from either customer payment or from advertising-supported video”. [source]
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