Why Google is Going to Dominate TV Ads

Why Google is Going to Dominate TV Ads

Google is using its Fiber connectivity to fundamentally change the way television ads are bought and sold. This is a game changer over the long haul, says Jay Baer.

Full Episode Details

Google wants to transform television advertising once and for all.

A really fascinating announcement from Google recently about their move into television advertising. Google plays the long game better than any company, maybe in history. As some of you know, Google has a project called “Google Fiber,” where they insert super high speed fiber Internet connectivity bandwidth in certain cities. Right now, fiber is in Kansas City, Provo, and Austin.

You think, “Well, why would Google want to be in the bandwidth industry?” Well, if you control the lines, you potentially control the ads. I think we always figured that makes sense for Google’s core business of selling ads online. But, Fiber also has a very robust television offering.

Google is Selling Hyper-Targeted TV Spots

Google has announced that, starting soon in Kansas City, local businesses will be able to purchase television ads on the Google Fiber network based on household, previous viewing, location. Those ads will be sold not on an overall audience basis, the way television has been sold since the very first day. They will be sold on actual ads shown basis, actual impressions.

What this means is that Google is trying to take their business model, their direct response advertising model and apply it to television, which has been resistant to that since the very first day. TV relies on Nielsen ratings saying, “You know what? I think somebody in Atlanta likes this show. Therefore, I’m going to pay you a ton of money.” Google’s like, “No. Why don’t we just charge people for actual impressions?”

That, if it gets a foothold ladies and gentlemen, is a game-changer. Now, some of you who have been around for a while may remember that Google tried this before with radio. Google had a radio program in the mid-2000s, where they gave technology to radio stations and said, “Hey, we’re going to give you this server that helps you optimize your advertising better.” It allows people to buy and sell advertising spots on a more efficient basis. It allows advertising to be sold in the same way, on an exact number of ads delivered basis, instead of a gross audience basis, and it didn’t work.

They shut it down in 2009. Why? Because radio stations weren’t terribly technology savvy at that point, for the most part, and people didn’t want to hear it. They were like, “Why would I want to sell ads on the number delivered when I can sell ads on this fictitious cloud of people who theoretically listened?”

But, folks, the times have changed. It’s all about actual value now, not perceived and potential value and Google is playing this way, way in the future.

Same thing with driverless cars. If you have the car, if Google makes a driverless car, and you just say, “Google, pizza,” guess what pizza place the car is going to drive you to? That’s right. That’s right. The one who has bought an ad from Google.

It’s going to be pretty interesting, folks.

Sprout Social Shoutout

imgresToday’s Sprout Social Shoutout is actually two shoutouts. One for my good friend Mark Schaefer, whose new book, “The Content Code,” is now available on Amazon. You need to get this book. It is stupendous.

tamsen-RTC-4Also, today’s Sprout Social Shoutout is for my good friend Tamsen Webster. Tamsen has been helping me a ton with my new book and my presentation called, “Hug Your Haters.” She is a brilliant instructor and advisor on all things speaking and communication. So thanks very much to Tamsen, who also tipped me off to what I call the step-by-step process in my book, which is called, “The Hatrix.”

About Jay Today

This video is f01-sprout-social-logo-MAINrom Jay Today is my near-daily 3-minute video where I talk about social media, content marketing, business and life. JayToday is available on Youtube, iTunes (as a video podcast, and now as an audio podcast too), and at JayToday.tv. candidio_logo@2x The show is sponsored by Sprout Social (which I use for my social media), and Candidio (a great video editing service).

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