For every hour of programming the local cable network gets to replace the network programmed ad with a particular number of their own ads. This is how you get localized TV ads in your basic cable. Presumably Google is reselling these spots. In fact from a TechCrunch article it appears they are only doing it for the DISH network currently. The Major cable operators are developing their own unified platform for doing this across multiple cable operators. (its called the Canoe Project - as in all the operators paddling in the same direction). I doubt Google will have much luck breaking into the terrestial cable market like this.
Google could work with some agencies in also purchasing spots on a national level and reselling those but they would lose any targeting capabilities.
I think that this service in its current state will be about as successful as google's radio ad business. So not very.
The problem is that mso's control the feed from the station to your house and they will be loathe to add a middle man. Google struck a small deal with a smaller satellite company a while ago(sorry i forget the name) to offer their ads which this is probably using and im sure google is paying a rediculous premium.
Anyways, cable and satelite companies by large will not go for this. They will make their own and are probably actively doing so. In other countries there are some deployments. Their each pushing their new interactive platform, ocap for cable, mediaroom for satellite and with good ad applications could offer services far superior to what google currently offers.
For example, they could
-target specific ads to specific set top boxes. So you could target demographics better. Why must I see tampon commercials!?
-allow the user to give feedback so to make ads more relevant or blacklist shitty ones they dislike. like fucking heads on commercials.
-instant/impulse purchase feature for products
-allow the user to choose which ads they want to view by category or whatever
-get better demographics on who is viewing their ad, not just the generic "300k cpm which google does."
-give viewers discounts for providing personal info
-interactive ads, forms to get feedback
-ability for user the equivalent of a cpc. if they like an ad they can get more info on it, watch it again, save it, etc.
-allowing customers to place ads by location so you could target a block around a pizzeria
-allow customer micro purchases so 50$ and it gets shown to ~500 houses once. cheap high quality camera ppl can make their own. Youtubeish. Googles requires like 8k.
All the above will make ads more relevant, increase demand and make a lot more money.
Google seems to just be a nice UI connecting ad agencies to people who want to purchase the ad, and a more clear way for someone new to put their ad on tv. The first feature, connecting to ad agencies already exists, otherwise known as a phonebook. Plus google is a middleman here probably taking a cut when there doesnt need to be one. Second feature already exists. This is nothing exciting imo and if it didnt have the google logo it wouldn't of made it on those blogs.
Google now provides anyone with a credit card and an internet connection with the ability to create a television commercial and monitor the success of their campaign using a simple online tool. Touche!
This is long overdue. The fact that we're still tracking and basing TV ratings and buys on 300k people in 2007 is absurd. Finally we have accountability, immediacy, and a common denominator to integrate ad campaigns against.
