How Google's New TV Service Could Disrupt The Advertising Industry

Search giant Google Inc GOOGLGOOG recently announced trial of a new local advertising service for Google Fiber. This service will enable TV ads to behave more like ads on the Internet. Mike Prospero, reviews editor of Laptop Mag and Tom's Guide, was on CNBC Monday to reveal more about the service.

The Service

"Basically when you go on the Internet and start browsing the web, the ads that you see are based on what you are reading," Prospero said. "So, much like that, on Google Fiber, the ads you see on TV are going to be based on what you've been watching."

Related Link: Can Facebook End Google's Dominance In Online Advertising?

The Benefits

Prospero was asked whether – and how – this new service can benefit both advertisers and consumers. He replied, "Well for advertisers, certainly the benefit is that they know that their ads are going to be reaching the people who most likely want to buy their products. And for consumers, it means you might not see as many Viagra ads if you are not interested in that sort of thing.

"And then the other cable companies really need to start thinking about this, because this could be a potentially larger source of revenue than traditional ad sales."

Disrupting Advertising

On whether this service can be disruptive for the advertising industry, Prospero said, " It could be. The one limiting factor right now is that Google Fiber is only available in a small number of homes. And in order to get this service, you need Google's hardware.

"Now, if other cable companies start licensing that technology, then we could see it adopted more widely. But until then, it's going to have a very small impact," Prospero concluded.