Google has announced today that it is beginning to test local ads with mobile-like ad-targeting for its Fiber TV service in Kansas City.
Fiber TV ads will be digitally delivered in real time and can be matched based on geography, the type of program being shown (eg, sports or news), or viewing history. You can opt out of seeing ads that are based on viewing history from the Fiber TV settings.
If you're a local business in Kansas City, just as with digital ads, you'll only pay for ads that have been shown, and can limit the number of times an ad is shown to a given TV.
As outlined above, this ad delivery process strongly resembles the way ads are targeted on mobile devices. The way things currently stand, television advertising takes somewhat of a scattershot approach, with ad space being sold based on entire markets. This new method allows for more granular control over ad distribution, allowing advertisers to target specific users that are more likely to be interested in their product — potentially driving down prices for ad space in the process.
It will be interesting to see what effect this type of ad-targeting could have on television advertising as a whole. As noted, the service is currently in testing for Google Fiber TV customers in Kansas City, and privacy-minded folks can opt out of the targeting altogether.