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Google Finally Tests Television Ads

After much rumor and speculation, Google has announced their plans to beta test Google TV ads and has secured EchoStar and Astound Cable as distribution partners.

According to the “Google Gram” delivered a few minutes ago (that’s what Google called their informal email)…

With Google TV ads, the entire process is automated – from planning the campaign to uploading and serving the ad to reporting on its effectiveness.  Like our AdWords advertising program, Google TV ads are bought using an auction model and through a single online interface that is already familiar to agencies and advertisers.

Google TV hopes to take advantage of “set-top-box” technology and provide advertisers with “aggregate, anonymized set-top-box metrics” as part of their reporting.

With Google TV ads, the entire process is automated – from planning the campaign to uploading and serving the ad to reporting on its effectiveness.  Like our AdWords advertising program, Google TV ads are bought using an auction model and through a single online interface that is already familiar to agencies and advertisers.

Interestingly, Google’s not prepared to stick their neck out and vouch for the quality of the traffic advertisers will receive. Instead of the “cost per click” model that has made them billions online, Google is taking the safe option by selling the ads on a CPM basis (cost per thousand impressions).

Advertisers can target by demographic, daypart and channel and pay only for actual impressions delivered. Pricing is on a CPM basis.

What are your thoughts on Google expanding AdWords, but selecting CPM? While it makes sense for Google to select a pricing model that guarantees them money, regardless of the effectiveness of the ad, can Google dominate offline channels this way?