Google offers new broadcast model

Some four years ago, Google CEO Eric Schmidt shared his vision of capturing the US$74 billion TV ad market. He argued that viewers or listeners should not be subjected to advertisments that were not targeted to their needs or interests. Enter Google TV, a social and interactive television applications platform, which Google says will integrate its search engine and advertising system through an internet-connected TV.

Not only would this mean a mass personalisation of programmes on behalf of the viewer, but also target-marketing of a company's products and services to the viewer through channelled advertisements. Based on its real-time ambient audio identification, Google TV will determine what is being watched from a small sound signature and, while the viewer is surfing the channels, Google TV's advertising system will target commercials depending on the programmes selected.

"Consumers tend to be reluctant to be force-fed advertising, so if we have to accept it, then it might as well be relevant, entertaining and useful," says Barney Loehnis, Asia-Pacific digital lead for OgilvyOne.

Google says live-stream ads offer fewer, but more targeted ads with localised content that makes them more relevant. Another advantage is on-the-spot advertising. Unlike traditional forms where companies buy commercials way ahead of time, on-the-spot advertising enables advertisers to assess the popularity of the programme and buy packages accordingly. Meanwhile, live-stream will also allow advertisers to know who viewed their ad, how many people clicked on it, and how many people chose to use a click-to-call feature to contact the advertisers.

But the question remains: is broadcast media ameniable to new media approaches? Google's most profitable online advertising tools, AdWords and AdSense have become proven methods of enabling small to medium scale enterprises to grow their businesses. However, broadcast-based advertisers which are neither e-based, nor small-scale, aim to target and retain existing customers while trying to attract new viewership. Ad reach is critical to FMCG companies which are the mainstay of TV advertisements. While Google claims that it offers value for money through targeted advertising, traditional TV advertisers see the value of reaching a mass audience.

But Loehnis believes that broadcast advertising offers blunt instruments: crude tracking and limited opportunity to learn how to improve performance. "Relevance is about placing the exact thing that someone is about to think in front of them the moment before they have articulated their desire," he says.

Although internet TV is not a new phenomenon, with Apple, Microsoft and Yahoo venturing into the domain, Google appears to have a pioneering influence by handing the power to the viewer to watch programmes or ads that they consider relevant to them.

"Google's model of advertising has been through supply and demand," says Malcolm Hanlon, managing partner Asia-Pacific, Zenith Optimedia. "A consumer visits a sponsored link if he/she wants to know more about it. Extending this model to broadcast TV, advertisers too will pay according to the level of response."

At the same time Hanlon expresses his doubts about Google's relevance in Asia's key growth market. "Google TV won't take off in China because China doesn't want Google," he says. "For now, we won't see Google TV replacing the traditional media and advertisers will see the value in advertising on the TV while acknowledging the popularity of new media."

As television becomes more interactive, advertisers will have to work harder to gather data to target messages. "Who should own the customer data - the media agency or the ad agency?" asks David Mayo, president, Ogilvy & Mather Advertising Asia-Pacific. "To this end, Google TV could pave a way for us to work together by combining content, creativity and technology."

Google's internet-connected TV

> Google TV integrates its successful search engine and advertising system through an internet-connected TV.

> All devices running Google TV software will have Wi-Fi and ethernet connectivity,
a keyboard and a pointing device
or a mouse.

> Based on Google's Android operating system, Google TV will have access to Flickr, gaming sites such as Club Penguin, music sites such as Pandora and Rhapsody, and a media interface similar to that of Boxee and Roku.

> Google's success in Asia will be limited since 75 per cent of ads are geared to China, and Google isn't in China.

This article was originally published in the 17 June 2010 issue of Media.