Google TV Shakes Up $83 Billion Ad Market

"Google TV is going to revolutionize the way we use media," declares Shattuck Groome, head of New York ad agency Gotham Direct Interactive. "It's the future of advertising."

Google TV, a new platform to integrate the internet and television, will pressure the TV industry to speed up its plans to create and sell targeted advertising. One of the largest efforts in this area, launched two years ago by Canoe, a joint venture by cable companies, is still sputtering.

Hulu has not yet responded to the Google initiative. In the past, Hulu has blocked content from Web TV platforms such as Sony's Playstation 3. Google worked closely with Sony and satellite TV provider Dish Network when developing its new service. Gotham Direct buys ads for clients from Google TV Ads, an existing online service for advertisers to upload videos to various networks through services from Dish and TiVo.

Ads linked to web searches were the chief source of Google's nearly $24 billion in revenues last year. According to a Businessweek report, Google TV may be able to tap into the lucrative $83 billion television ad market.