Google to expand TV ad service to online video

Michael Steib, Google's director of television ads, told the newspaper that Google is working on technology that would allow advertisers to buy ads across Google TV, YouTube and other websites through the same interface.

He said Google is testing the service, called Google TV Ads Online, with a small group of advertisers. The newspaper said it was likely to be introduced in the coming months.

It said Google, which currently makes 97 percent of its revenue from online advertising, was hoping the new service would make it easier for bigger brand advertisers to spend across both traditional and online media.

The Journal said that for the new effort to work, however, YouTube needs to secure longer-form video such as television shows and movies.

And it noted that some television ads may not be suitable to run before or alongside online video.

Google's move comes as increasing numbers of people are watching television online.

Earlier this year, Google dropped another advertising initiative, its Print Ads program, an attempt to auction off space in newspapers to bargain-seeking advertisers.

The elimination of Print Ads came as Google cuts costs in the face of a struggling economy that has slowed even the online advertising king's money-making machine.

Google also announced it was getting out of the broadcast radio advertising business in a move that was expected to result in the Internet powerhouse shedding about 40 workers.

On Thursday, Google said that it plans to cut nearly 200 marketing and sales jobs from its international operations.

Google's rapid growth resulted in some job duplications and the company "over-invested" in some areas, Google senior vice president of sales and business development Omid Kordestani said.

(c) 2009 AFP