Google [GOOG] officially announced Google TV last week and gave the full details of what we can expect from the new TV service. The Google TV can be put in the home by two methods. First off, users can buy a new TV (when launched) that will have the Google TV service built in. The main companies working on these TV's are Google, Intel and Sony.
Secondly, a Logitec companion box can be used that sits between the set top box and a regular HDTV. Both methods bring Google TV to the user.
It seems that ad companies are getting excited about the new TV service. Bloomberg BusinessWeek reports that the interactive ads that will be made possible have them saying 'It's the future of advertising.
The new Google TV service will be made available in the US first due to the amount of HDTV's found in homes. The service runs Android and allows users to search for content they want to watch now. The TV Guide will be simplified in that it will list all programs available at on-line locations as well as from the cable providers.
For Google to make this in to a money making venture, they will rely on interactive ads that will engage viewers more, potentially making advertisers more money in the process, as well as Google a hefty amount too.
In addition to that, ad firms hope that Google's internet heritage will drive the cost of TV ads down. As BBW reports, current TV ads can cost in the thousands or millions. According to BBW, the going CPM rate for online video on the web is about $30 much lower than the going TV rate.
Google has a bit of a challenge ahead. Others have tried bringing the internet to the TV but generally, the services are not that good and generally go untouched. If Google can make the service work well it could go mainstream.
Via: Nexus