Google and its TV Ads Program

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Case Details:

Case Code : MKTG205
Case Length : 15 Pages
Period : 2006-2008
Pub Date : 2009
Teaching Note : Available
Organization : Google Inc.
Industry : IT, Advertising, Television
Countries : USA, Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"TV, for the most part, has been un-measurable. We're making TV as accountable as the Internet is. We have to prove ourselves. With the Internet, it was a nascent industry when we entered it. In TV, we're novices in an entrenched industry."¹

- Keval Desai, Director of Product Management, Google TV Ad Program in 2008.

"The only way that Google is going to take any share on TV is if they can take advantage of data to provide targeted advertising that is not available today."²

- Ross Sandler, an analyst with RBC Capital Markets³ in 2008.

Introduction

On December 03, 2008, Google Inc. (Google) signed a deal with Hallmark Channel to enable advertisers to purchase ad spots on the channel through the Google TV Ads program. In September 2008, Google had entered into similar deals with Bloomberg TV and NBC Universal's cable networks.

All these deals were part of Google's efforts to establish itself outside the Internet, by entering new media domains. The Google TV Ads program was a means to capture a share in the estimated US$ 74 billion TV ad market in the United States.

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1] Brian Morrissey, "Can Google Crack the TV Ad Market?" www.adweek.com, August 25, 2008.

2] Ralph Paglia, "Google Seals Local Cable TV Advertising Deal with NBC - Are Dealers Ready to Rumble?" www.automotivedigitalmarketing.com, September 10, 2008.

3] RBC Capital Markets is ranked among the top 15 global Investment Banks. It provides a number of products and services to institutions, corporations, governments and high net worth clients in 160 countries.


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