Monday, March 20, 2017

Google Home Tests The Waters With Voice Ads

Last week's WSJ had an interesting piece on how Google Home recently tested the waters with a voice promotion for Walt Disney's new Beauty and the Beast movie. With the consumer's ad tolerance in mind, its clear that Google is seeking new ways to monetize its new Google Home search platform via voice interactions with users.

The article stated how the reaction so far has been mixed, with some saying that "Advertising on the device would really ruin the experience."  The more interesting part is that Google claims this wasn't an ad, but rather a "partnership" with Disney, as Disney didn’t pay Google for the alleged promotion. However, this may just be Google's way to first show proof of concept before rolling out a similar paid service.  Historically this has been the case, with the company typically trying to make products popular before profitable. Going forward, Google will need to find a delicate balance between testing this new potential revenue stream and making sure the ads dont come off as intrusive.

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