NBC Universal has decided not to renew an advertising deal it struck with Google two years ago, a move at the time seen as a revolutionary and groundbreaking new step for Google's expansion into ads beyond the online space.
It was sort of an experiment for both Google and NBC Universal. The latter was in search of a new and different way to sell ads on some of its newer, less known cable channels like Chiller and Sleuth. For Google, it was a way to experiment with ad sales, which it had done so well on the Internet, on a new level.
But apparently when it came to managing advertising deals for TV networks, Google fell a bit flat.
The deal between the two media companies had its skeptics from day one. Rob Norman, CEO of media holdings company GroupM, was quoted by Reuters as saying, "What Google is good at -- the matching of actual or implied intent with relevant messaging -- is really hard (on TV). As a result, it's hard to get very excited about the proposition, even if you are a long-tail advertiser. Only a mug writes Google off, but I don't see their efforts as transformational in the short term."
One good thing Google did while it tackled NBC Universal's projects was to bring smaller advertisers on board. The search giant is credited with making TV ads more accessible, but in the end NBC just doesn't think it did a good enough job.
"While we are no longer offering NBC Universal inventory through Google TV Ads, NBC Universal continues to be a great partner to Google. Both NBC and Google are committed to bringing more relevance to TV viewership and advertising. CNBC is an important partner in the launch of Google TV, and we are working together on research studies," said Google in a statement.