Google set to rock ad world

The world of television advertising could be turned on its head following the announcement that Google is set to step into the field.

The Californian company has struck its first major deal to enter the television advertising business with US satellite TV operator EchoStar.

The two businesses have a partnership to create an automated system for buying, selling, delivering and measuring the impact of TV ads running on EchoStar's national network.

This move is likely to upset the cozy way TV ad impact has been measured - the new service offers accountability in measuring how specific ads perform with target audiences.

Google's Caval Desai said: "If you are a niche network, you don't get measured today."

But industry analysts said Google is likely to face stiff resistance from traditional media companies who jealously guard data on customer-viewing habits, seeing it as the crown jewel of what they sell to advertisers.

The prize, for those who manage to crack the market, is the $70 billion (£37 million) a year US television advertising business - where the biggest corporate brands spend their vast marketing budgets.

Once Google's new approach to advertising, known as 'pay-for-performance', is established in the US market, the company plans to expand internationally, although spokespeople gave no timeframe.

© Independent Television News Limited 2007. All rights reserved.

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