Google and the Future of TV Advertising

written by: Richard Kastelein

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Neal Mohan, vice president of product management at Google, and Barry Salzman, managing director of media and platforms at Google unveiled their visions of the future of online video advertising at the Interactive Advertising Bureau's MIXX Conference 2010 in New York last week, according to Mediapost.

And this reveals some insight into perhaps how Google will handle the online/TV convergence when they release Google TV this month in the USA. 

The two rolled out seven predictions to the crème de la crème of NYC advertising executives, who got a taste on what the future of display advertising could look like by 2015, while sharing innovations that Google engineers have been working on for the past few months. Real-time search and social media will up open up an new options for advertisers - and both of these topics are integral in their Google TV scope as we covered in articles on the I/O conference earlier this year.

This looks like it could be a strong move to turn the TV space of the future into a bidding market for brands. And this is not foreign territory to them when looking at their Google TV ads platform which has been kicking around for some time as well as their plans for Google TV. It's a clear play for a cut of the some 60 billion dollars currently being spent annuallly on traditional TV advertising in the US as number seven makes pretty clear.

Google's Seven Predictions By 2015:

1) 50% of online ads will have video in them and be bought on a cost-per-view basis. Today, 24 hours of video content are uploaded to YouTube each minute. Google Tuesday officially launched two YouTube video formats, TrueView, based on a cost-per-view advertising model after dabbling in it for nearly a year. This means advertisers only pay when consumers chose to watch the advertisement. TrueView will roll out later this year.

2) 50% of all display advertising targeted to a specific audience will rely on real-time bidding.

3) Mobile will become the No. 1 screen for advertising. The mobile screen will become the first screen that consumers go to on a variety of mobile devices.

4) Five new metrics will emerge to measure the success of ad campaigns. They will become more successful and important. Some exist already: engagement and interaction rates in rich media, video view, and impact on Web search results. Others might include sentiment analysis to measure the viral influence and the tone of consumer chatter about the brand across the Internet. Or, measure foot traffic into the store through geo-based technology.

5) 75% of ads will become socially enabled. In the long term, all ads will become social as the industry moves to an always-on communication.

6) 50% of brand campaigns will run rich media in the ads, up from 6% during the last year.

7) Display advertising will become a $50 billion industry. Google advertisers have increased the amount they spend annually with the technology company about 75% during the last year.

I made some predictions in early 2010 on the future of TV advertising around Google's 'potential' technology.

Try out another scenario… one which no one else could do in this space. No one. Google is currently allowing advertisers to use their innovative and very fresh Google TV advertising platform to launch TV ad spots in US cable markets. Google TV Ads is an online marketplace that makes it easy for anyone to buy and measure national cable television advertising. Using the familiar Adwords interface, you can launch a television campaign in minutes

This means, in Google’s new ubiquitous, massive TV realm, I could simply buy time slots or even permanent space on for programs or channels in the future of Google TV.

 

Why two? Time slots for more linear TV experiences such as a classic 30 second spot, using an ‘old school’ non- elective, interruptive, advertising model.

Or.

I could buy elective (opt in and opt out) landscape around particular program for TV Widgets for shows or even entire channels. It might be a custom widget built in Android or could even be some kind of Chrome extension. It could be Contextual Advertising based on the show’s content, it could be Behavioral Targeting based on the viewer’s preferences and habits, it could be Location Based Advertising (LBA), based on the viewer’s lat and long via IP, or it could be Experience Marketing (full fledged TV experiences).

I think this is what Google has in mind. And I for one… think it’s going to work.

Appmarket.tv will be attending and involved in the 2nd Annual Future TV Advertising Forum in London on December 2nd and 3rd this year - which promises to be an interesting convergence of ideas and players pontificating about the future.

 

About the Author

Richard Kastelein
Founder of The Hackfest, publisher of TV App Market and global expert on Media & TV innovation, Kastelein is an award winning publisher and futurist. He has guest lectured at MIT Media Lab, University of Cologne, sat on media convergence panel at 2nd EU Digital Assembly in Brussels, and worked with broadcasters such as the BBC, NPO, RTL (DE and NL), Eurosport, NBCU, C4, ITV, Seven Network and others on media convergence strategy - Social TV, OTT, DLNA and 2nd Screen etc.

He is a Fellow of the UK Royal Society of Arts (RSA) and UK Royal Television Society (RTS) member.

Kastelein has spoken (& speaking) on the future of media & TV in Amsterdam, Belfast, Berlin, Brussels, Brighton, Copenhagen, Cannes, Cologne, Curacao, Frankfurt, Hollywood, Hilversum, Geneva, Groningen (TEDx), Kuala Lumpur, London, Las Vegas, Leipzig, Madrid, Melbourne, NYC, Rio, Sheffield, San Francisco, San Jose, Sydney, Tallinn, Vienna, Zurich...

He's been on advisory boards of TEDx Istanbul, SMWF UK, Apps World, and judged & AIB awards, Social TV Awards Hollywood, TV Connect & IPTV Awards.

A versatilist & autodidact, his leadership ability, divergent and synthetic thinking skills evolved from sailing the world 24000 miles+ offshore in his 20′s on sailboats under 12m.

He spent 10 years in the Caribbean media & boating industry as a professional sailor before returning to Europe, to Holland.

A Creative Technologist and Canadian (Dutch/Irish/English/Metis) his career began in the Canadian Native Press and is now a columnist for The Association for International Broadcasting and writes for Wired, The Guardian & Virgin. His writings have been translated into Polish, German and French. 

One of Kastelein's TV formats was optioned by Sony Pictures Television in 2012. 

Currently involved in a number of startups including publishing TV App Market online, The Hackfest and Tripsearch TV. As CSO for Worldticketshop he helped build a $100m company.

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