The multi-year deal will start of small, but will likely grow as Google expands beyond the rather limited network of just 13 million viewers provided by its partner DISH Network.
Google TV Ads are already more sophisticated in their reporting than most TV commercials.
Google…analyzes the data from set-top boxes to determine exactly which ads were watched or skipped, with a second-by-second breakdown…The reports from Google can pinpoint the moment when viewers most commonly changed the channel, potentially helping marketers shape the creative work on their commercials. For instance, if viewers are turning the channel after seven seconds, the agency might revisit the opening of the ad.
Still, there’s a missing piece of the reporting pie, and that’s where Google hopes Nielsen will step in.
With Nielsen’s help, Google will begin to take that information and overlay sampling-based ratings, adding a rich demographic layer to the raw numbers that EchoStar provides…Demographic information about audiences is the specialty of Nielsen, which will contribute its intelligence about digital household viewership to Google TV Ads so media buyers have all the data.
Google’s master plan is to make TV ads as accountable as AdWords. “We see a future in which, when you sit down in front of your television set, you will see ads that are more relevant for you,” said Mr. Steib of Google, according to the NYT. “When we make advertisements more relevant to viewers, inventory becomes more valuable and the return on investment is much higher for advertisers.”
However, Google still needs to work on growing its network. With such a limited number of viewers, Google is still not able to fully challenge Madison Avenue. It reminds me of the battle in paid search. Many say that Microsoft’s adCenter providers excellent value on their ads, they just don’t have the audience reach of Google.