Google's Schmidt On Targeted Advertising

Google CEO Eric Schmidt speaking to investors in San Diego said "We are just at the beginning of targeted advertising".

" Schmidt said about 90 to 95 percent of TV viewers are exposed to random ads. "It's a constant barrage of ads that aren't relevant; pet food for people without pets, baby products for families with out kids. Even a small improvement [in relevancy] would have a very large impact."
He said Google is exploring ways to better target TV advertising and leverage the fact that an increasing number of consumers have IP addressable set top boxes."

I've felt for awhile the (not too distant) future of TV advertising includes personalized super-local "AdSense" type spots delivered to my demographic for my personal tastes and needs. They will know from my search and spending habits I haven't been to Costco for awhile and maybe Sam's Club will bid to hit me up with an enticing offer to pull me from Costco. Abertsons grocery figures I feed a large family and that like most in my neighborhood I shop at SaveMart. Albertsons might bid up big to get onto my TV screen. If ads are local and relevant to me I might not Tivo through ads like I do now.

Think of the possibilities for local merchants.

Schmidt is telling us where they are going, I'm listening.

Update:Danny Sullivan reports Google is delivering ads to Concord California cable subscribers! That was fast Eric.