Google Sets Sights on $10 Billion Mobile Ad Market

August 7th, 2007

The Wall Street Journal got the GPhone rumor mill churning. Now London’s Telegraph is adding grist to the mill, reporting that Google services including search, e-mail, and interactive maps will come preloaded on the device that the company has yet to admit exists.Anian, a Reuters company that keeps an eye on industry trends for institutional investors, is at the root of the rumor. Anian reported that Google has enlisted Taiwan’s HTC to design a Linux-based phone. T-Mobile would be Google’s U.S. partner, Anian maintains, while France Telecom’s Orange would push the GPhone in Europe. The launch date, Anian said, will be during the first quarter of 2008.

The potential opportunities for Google entering the mobile market with an ad-subsidized phone are clearly vast. Frost & Sullivan figures the mobile advertising market in the U.S. alone will generate $2.12 billion in revenue by 2011 compared to $301 million in 2006. The Shoesteck Group estimates $10 billion globally by 2010, while EJL Wireless Research pegs the worldwide mobile advertising market at $9.5 billion by 2011.

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