With the growing online ad business exploding, MTV Networks has agreed to a deal with Google (GOOG), the online search giant, to offer ad-supported TV clips to bloggers and website publishers, reported USA Today. Revenue will be shared between Google, MTV and the blog or Website where the ads are featured.
The deal will be offered to only specific, preselected Google clients. They will start showing them toward the end of August.
Tom Freston, CEO of Viacom, which owns MTV Networks, operator of MTV, Nickelodeon and other cable channels said, "These are niche sites we think are compatible with our content."
This is the first deal of its kind and offers great promise to MTV as it will now have access to Google's almost 100 million monthly visitors. Google CEO Eric Schmidt added, "We have this large network of advertisers that presumably will grow very quickly."
Researching firm Garner analyst Allen Weiner believes that this is "the future of TV." Others are saying that within several years video ads will replace the text ads as the main source of Google's revenue.
I don't know whether this will add to MTV much, but I do agree that this is the way networks will attempt to go. To say it is the "future of TV," doesn't resonate with me much though. The truth,to me, is that much of what happens will be that the online destinations the ads go to, will become the new TV channels of the future.
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