A couple of months ago, I paid about $650 for the new iPhone and it has been worth every penny spent. Now, I travel without my laptop while staying connected with family, friends and clients.
As a business coach, who receives over $1,000/month in revenue from Google's AdSense, I am interested in the growth potential of wireless advertising. The more than 2 1/2 billion phones in use worldwide exceed the number of PCs and TVs combined. On September 17, Google announced a Web program aimed at advertisers who have created sites for display on cell phones and other handheld devices.
Like its online ad network, Google's AdSense for Mobile delivers ads relevant to the advertiser's mobile audience. "The sheer volume of users across the globe makes mobile the next channel for information," says Dilip Venkatachari, director of product management for Google's mobile team.
Smaller companies offer a glimpse into how Google might play its wireless hand.
Blyk, a wireless startup that made its debut in Britain on September 24th, offers free mobile phone calls and text messages for people aged 16 to 24 who agree to let companies send text ads to their handsets. Blyk leases space on European carrier Orange's network in Britain, but operates its own billing and marketing system. That lets it retain full control of valuable customer information and avoid sharing ad revenues with the carrier. Users fill out detailed information about their lifestyles, areas of interest, and brand preferences. Those who agree to receive tailored ads get 43 minutes per month of free mobile voice service and 217 free text messages.
Even without a network, Venkatachari says Google plans to connect mobile advertisers with users based on information from its search engine, maps, and other software, just as it has done on the desktop. Via Google search, for example, an advertiser learns a user is at the corner bakery in downtown Chicago. And it learns the person has a taste for sweets.
If Google decides to spend the $4.6 billion that may be needed to win the federal auction early next year for a radio spectrum, analysts speculate that it has several options: continue its broadband expansion, or buy a wireless carrier, such as beleaguered Sprint Nextel. Then it could launch the first ad-supported, and free, nationwide phone service.
Source: BusinessWeek, October 8, 2007