On Tuesday April 3rd, Google signed a contract partnership with EchoStar to offer television advertising. The system will work based on the 2-way signal broadcast which the 13.1 million customers of EchoStar already have installed in their systems. Using the 2-way signal broadcast, Google will manage advertising space inventory to serve advertisements to a much more direct audience.
Google plans to use software to analyze the effectiveness of the television advertising to provide better results for the advertisers themselves.
CEO Eric Schmidt said in the last press conference that “whatever we do will be new and different from the way it is currently sold and marketed.” This will be the strongest driving force behind what Google is doing.
Why? Google doesn’t want to become just another player in an already over-saturated market — such as with cell phones. Google will enter into an already existing market, but they will enter with a force that is innovative and never seen before. They will do it, but they will do it better.
Google can and will generate the revenue they need to make this new product line of advertising a success. Google has made big pushes like this before in the marketing field and I have full confidence that they will succeed in television advertising from now on.
How the software will actually analyze the effectiveness in the advertising? That’s a whole different ball game which I’m eager to see how Google handles it. I might actually consider starting to do some television advertising myself if it’s cheap enough — just to see how the system works.
