Google Strikes TV ad Deal With NBC Universal

Google Inc. and NBC Universal on Monday have sealed a strategic multi-year advertising, research and technology partnership, under which the Internet powerhouse will sell ads on some cable networks owned by the latter company.

Google’s latest move would likely give the Mountain View, Calif.-based company a strong foothold in the business of television advertising.

In a joint statement late on Monday, the two companies announced the multi-year deal between the GE media unit and Google. The deal calls for Internet search giant to employ its TV Ads platform to sell advertisements on some of NBCU’s cable networks, including Sci Fi Channel, Oxygen, MSNBC, CNBC, Sleuth and Chiller channels, in the coming months.

“We’re extremely pleased to join forces with Google on this effort, which will help us develop better accountability and [return-on-investment] metrics for our advertisers and attract an entirely new group of clients to television advertising,” NBC Universal President for Sales Mike Pilot said in a statement. “This is another step in our commitment to trying innovative advertising approaches and testing new technologies that can help benefit our clients.”

NBCU said the deal could expand to other NBC Universal properties, including top-rated cable network USA Network and NBC, the fourth largest broadcaster, in the future.

“The Google TV Ads platform is making television advertising more accountable and measurable and we're pleased with our progress to date,” said Tim Armstrong, president of advertising and commerce, North America, for Google. “Our partnership with NBCU will help us bring the power of television to a broader set of advertisers as well as give our current advertisers increased reach through our system.”

Using the Google TV Ads platform, the two companies also plan to work together on a series of custom marketing and research projects.

Google and NBC said they will share all ad revenues from the partnership, and are looking at new methods to test the effectiveness of advertising and measurement of audience, as well as new ways to allow Google to sell ads in local markets, not just at the national level.

Google TV Ads that came into existence 17 months ago uses set top boxes to serve targeted ads. So far, only the Englewood, Colo.-based Dish Network Corp., the second-largest satellite TV service in the U.S., and a California cable system are on board.