Google to start major assault on TV market with video ads

Google is this week launching video advertising across its global network, in a significant attempt to grab a share of the television ad market. The development could represent a serious threat to existing TV broadcasters and advertising agencies.

Recent tests in the US have seen companies such as General Motors and Paramount using the service. Other entertainment, car and travel brands are expected to follow. Google claims that most will pay a few pounds to reach a thousand viewers, although the minimum is 15p per thousand. “The average will be &£3 or &£4. It could rise to &£10,” predicts Gokul Rajaram, Google product management director for advertising products.

The cost will depend on the auction process that Google already uses for text advertising.

Video ads will compete for position against text ads, offering an opportunity for search-marketing agencies to win business from traditional media agencies.

Advertisers will be able to target their ads at different groups of users and measure how many people play the video, for how long and the number of click-throughs to websites. Experts believe companies could find it an attractive alternative to traditional TV advertising, particularly as more TV services move online, although Google says that it will be complementary.

“Instead of spending millions of dollars on a TV buy without doing pre-testing, the video ad will enable clients to test different messages in a short period and figure out which message audiences respond to,” adds Rajaram. “We believe it is going to complement offline television advertising in many ways.” The service will not run on the main Google search engine page, but will be available on Google Video and across its AdSense network, which delivers advertisements to hundreds of thousands of sites.