TR Editors' blog

Google, Intel, and Sony Plan New TV System

Set-top boxes will offer easier Web surfing, and let developers create TV apps.

Kristina Grifantini 03/18/2010

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A Google-Intel-Sony partnership will soon offer TVs and set-top boxes that make it easier to browse the Web on a TV, according to a report by The New York Times. The Google TV platform will be based on the Android operating system and will be open to developers, who will presumably be able to create downloadable TV apps, like games.

While some TVs and boxes already allow Web access, these generally don't offer full web surfing. Products that let you play video from a computer on a TV have also been around for a while. But the rising popularity of video sites like YouTube and Hulu.com may mean we'll be seeing more Internet options--potentially even related social networking services--on TVs. Logitech will offer a remote control with a tiny keyboard to aid in web surfing on Google TV.

Google's venture into TV was preceded by its Google TV Ads system, which sells ads on some televisions systems and figures out where an advertiser's ad should be placed based on keywords (similar to its web advertising). Several years ago, Google also tested a software which used a computer's built-in microphone to listen and identify audio from a user's TV to target related ads on the user's computer.

How Google Plans to Take Over TV

Can Google apply its Web-advertising formula to television?

Erica Naone 11/21/2008

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Can Google conquer television? Yesterday, I talked with Keval Desai, product manager for Google's TV Ads unit, and he did a pretty good job convincing me that it can.

"TV is becoming like the Web," Desai says. From an advertiser's perspective, he has a point. In the 1980s, a popular TV program like The Cosby Show might have captured half the viewers in the entire United States; today's most popular shows, like American Idol, are lucky to capture a fourth of the whole audience. The difference is that there are dozens of channels now, each catering to a different set of viewers. As Desai notes, this is a lot like the Web: the audience is out there, but it's split into small bits consuming a wide variety of content.

So Google's TV Ads system works much like AdWords. An advertiser selects keywords and sets a spending limit for each day (per thousand people who see the ad). The system then figures out where and when the ad should be placed. Google is borrowing another trick from Web advertising: a soon-to-be-launched feature that lets advertisers search for shows based on audience demographics (a feature inspired by Google's search-based ad targeting).

The service is clearly aimed at a different kind of television advertiser. In addition to a simplified user interface, TV Ads includes instructions on how to visit Google's marketplace and find someone who can help make an advert. Indeed, Desai says, the plan is to draw in advertisers who don't normally put ads on TV and, as a complement, bring ad dollars to networks that don't normally have broad recognition.

The TV Ads interface already lets you select target shows based on audience age and gender information, which is in turn based on data from a partnership with Nielsen. But Desai told me about a partnership that will take this farther. A satellite-TV company called Echostar, working with credit-reporting company Equifax, will cross-reference shows watched (using its own data from set-top boxes) with income and buying habits (using Equifax's data). This will let Google offer shows to advertisers that will reach, for example, people with household incomes greater than $100,000. Desai stresses that all this data is made anonymous, so it certainly won't be possible to target specific households with ads.

I wonder how long we'll have to wait for that.

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