Televisions as we know them should have been dead and buried by now. Superfast internet, cheap tablets, and on demand services should have killed traditional television programming dead. However nostalgia and social needs have kept us staring at the biggest screen in the house. Google firmly took aim at the hub of the house over the last few years.
After the success of Chromecast and Android TV providing the content Google now wants to change the adverts too. They will now begin to change TV ads to be much more like those online during a local pilot using its internet provider Google Fiber. Starting only in Kansas City, Google will break the standard Nielsen rating system and report exactly how many times the ad is watched.
Traditional advertising is based on past viewer data from shows, length of the advert, and area it is shown in. This is just a guess, quite often having no bearing on the amount of people that actually see it. Things like the Super Bowl are easy to predict but with TV shows now on demand and recorded its increasingly not cost effective.
Web Model On TV
Bringing in a web model of charges based on the amount of times your advert is actually seen by people is only a small part of it. Costs can be linked to amount of times seen, budget available or even a specific audience. Analytics will be used based on the types of shows previously watched and viewer data to tailor the adverts to the shows and the people watching.
Details on the implementation and pricing are limited, however if it takes a similar approach to Adwords, then algorithms would be responsible for working out the peak advert showings for budget, target audience and people watching. This could mean the end to repeated ads watched on another channel and irrelevant ads to your household.
This may never see usage outside of this test model in Kansas City but it makes sense providing they can convince traditional advertisers. One block to a large scale roll out is cable company’s unwillingness to give up control. Especially on something so new and so detrimental to income. Meaning this new model may always stay nestled within Google Services and reliant on the slow roll out of Google Fiber.Source: AdWeek