Google s Free Phone Proposal
Below is a MRR and PLR article in category Computers Technology -> subcategory Web Development.
Google's Free Phone Proposal
Overview
In a recent talk at Stanford's School of Business, Google CEO Eric Schmidt made waves across the communications industry. He envisioned a future where free cell phones could be offered to users willing to watch targeted ads.
Mobile Phones as Computers
Schmidt pointed out that mobile phones are increasingly becoming like handheld computers. Their capabilities now include text messaging, email, and web access. He cited research predicting that cell phone usage could rise to eight to ten hours per day for communication and internet activities. With such integration into daily life, advertising emerges as a viable revenue source, potentially subsidizing free phones.
Advertising-Supported Models
Schmidt acknowledged that completely free mobile phones might not be realistic, drawing parallels to newspapers that rely on advertising yet aren't entirely free. Successful free publications, such as community weeklies, show the potential of this model. Unlike newspapers, television networks have historically thrived on advertising without offering free distribution.
Google's Experiments
Google has been testing text and video ads on cell phones with LCD screens and has partnered with some Japanese networks where mobile shopping is already prevalent. While there are no immediate plans to distribute free phones, Schmidt emphasized not dismissing Google's offhand remarks. The potential for advertising on cell phones is clear, with these devices soon able to provide the same targeting data that computer clicks offer.
Advertising Opportunities
An analysis of Google's acquisition of YouTube highlighted the $67 billion in annual advertising dollars up for grabs due to the fragmentation of broadcast TV. The potential for directing some of this revenue to cell phones is significant. Though not a current priority, Google's capabilities suggest they could quickly capitalize on this opportunity.
Future Prospects
From Schmidt's perspective, the market for mobile advertising is on the rise. In 2005, Google's $9.3 billion revenue came from online advertising, demonstrating their expertise in new advertising platforms. Google predicts that mobile phone ad revenue will eventually rival that of computer-based ads, signaling a promising future for this model.
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