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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Introduction Contd...

Google first entered the business of selling TV ad spots in April 2007, when it signed a deal with EchoStar Communications Corp. to sell a portion of ad inventory on the EchoStar DISH Network.

Google replicated some aspects of the business model of its successful online AdWords program for TV. It developed an automated system that could be used to purchase ad inventory on TV through an online auction.

Through the TV Ads program, it intended to provide advertisers with a system that would help them ensure better targeting of ads on TV.

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It utilized the data from set-top boxes of cable TV subscribers to provide advertisers with an idea about the viewership of their ads. In addition, Google also provided a number of tools to the advertisers to create ads, manage and deliver ad inventory, and to some extent, measure the effectiveness of the ads.

It claimed that its service would increase the relevancy of ads. Google also claimed that its TV Ads program would attract advertisers who had never advertised on TV.

Google claimed that the program provided several benefits to TV networks as well. It claimed that with its service, networks with fewer viewers and local TV channels would find it easier to sell their ad inventory at better rates.

Google also stated that with its service, TV networks would find it easier to sell ad inventory that was hard to sell...

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