In an on-stage interview with writer Ken Auletta of the New Yorker magazine, Google CEO Eric Schmidt spoke about how Mobile Advertising will be the big money maker, while plans to monetize YouTube and other media outlets remain under development and consideration.
“Mobile looks like it will ultimately be the highest of ad rates,” because ads can be targeted by user location, he said.
According to Schmidt, most of the current mobile advertising is thanks to Apple’s year old iPhone, which features a usable web browser.
Using the phone’s built in GPS capabilities in hand with Google’s advertising software, the computer store across the street from you while you’re walking down Main Street could put an ad directly in front of you when you’re within walking distance to it’s front doors.
This sort of advertising power clearly promises a lot to major industries, and as a result, to Google’s bottom line.
Imagine being on vacation in New York City for the first time. You don’t know the city well enough to know the best places to eat or where to find the type of food you want to have. Theoretically, you could pull out your iPhone, search for “Thai Food Restaurants in NYC”, and be given advertisements for those restaurants that are within walking distance.
Unlike eCommerce stores who use ads to bring in discerning buyers, mobile advertisers have the very real possibility of seeing a return on their investment almost immediately — when the customer walks through their door to make a purchase.
It’s an exciting new area of online advertising which is sure to change the landscape as we move forward with technology.
Read more about CEO Eric Schmidt’s interview here.
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