Google moves into TV ads with BSkyB deal
Satellite broadcaster BSkyB said Wednesday it would tie up with Google Inc. to deploy the leading Internet search company's suite of search, advertising and video functions on its broadband service.
BSkyB chief executive James Murdoch told reporters the British firm would launch an online, user-generated video-sharing site, its own e-mail service and a search portal.
He said the company planned to have the first of the new offerings up and online by spring and then look to move things ahead "pretty fast.
Under the BSkyB deal, Google will be able to move into TV advertising. Google is looking to use information about viewing habits, which can be obtained through the broadcaster's set-top boxes, to produce more targeted TV advertising. Eventually, marketing experts could tailor campaigns to specific viewers, even storing adverts on the set-top box itself.
James Murdoch, BSkyB's chief executive, said the rise of broadband made the traditional way of thinking about advertising redundant. "The weird thing about the media market is people have thought about it in two halves: online and TV. The truth is, in a connected market, everything is connected," he said.
Google is also working with Sky to explore the potential of using advertising on mobile phones. The tie-up will go some way towards filling the gap that opened up last month when its rival Yahoo! secured a crucial deal with Vodafone. From next year Vodafone's British customers will be able to get discounts in return for accepting adverts, sourced by Yahoo!, on their mobiles.
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