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Google Focused in on TV Advertising's Inept

EchoStar Communications Corporation and Google announced that the companies have entered into a partnership agreement to introduce the first automated system for buying, selling, delivering and measuring television ads on EchoStar DISH Network's 125 national satellite programming networks.

Traditional advertising agency executives, and certainly their media buyer employees, are likely in mourning upon hearing this latest Google encroachment that signals yet another step towards sending their fundamental value proposition closer to a moribund state.

It's hard for me to imagine that an ad agency can rationalize their legacy business model, and associated fee structure, much longer. Even if this first major trial of the highly-measurable Google approach isn't a huge success, the insertion of automation and meaningful accountability is sure to upset the status quo within the U.S. $60 billion TV advertising market.

Google will have access to a portion of DISH Network's advertising inventory that spans across all channels and dayparts. The agreement is the first of its kind for a national pay-TV provider and Google.

This partnership extends Google's current advertising platform to a national TV audience with the aim to deliver more relevant and measurable ads. EchoStar and Google are working together to provide automated online campaign planning, scheduling, delivery and measurement of ads on the DISH Network.

"DISH Network is focused on improving all aspects of our business, and advertising is no exception," said Charlie Ergen, Chief Executive Officer, EchoStar. "Through this groundbreaking partnership with Google, we are confident we will be able to bring increased efficiencies to DISH Network's advertising sales and more accurate, up-to-date viewer measurement with easily accessible online reporting to advertisers."

"Our partnership with EchoStar is important for us as we begin to offer a TV advertising platform broadly," said Eric Schmidt, Chief Executive Officer, Google. "We think we can add value to this important medium by delivering more relevant ads to viewers, providing better accountability for advertisers and better monetize inventory for TV operators and programmers. EchoStar, with its focus on technological innovation and its dedication to improving end user experience, is a great partner for us as we move forward to accomplish these goals."

Perhaps on a more positive note, I can see how this further decoupling of ad agencies from the control of advertising will greatly benefit the independent talent involved in concept development and video production. I believe that more and more marketers will question the markup of these creative services by ad agencies, for what some say essentially amounts to an agency's centralized coordination and billing services.

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