Mark Evans

This Phone Call Brought to You by Google

In an interview with Reuters, Google CEO Eric Schmidt ruminated about a time when mobile phones would be free or subsidized if consumers agreed to watch targeted advertising. "Your mobile phone should be free," he said.. "It just makes sense that subsidies should increase" as the amount of advertising on mobile phones expands. In a world where there's advertising on trash cans, public transit vehicles, elevators, athletes' jerseys (at least outside North America), sidewalks and shopping carts, why not on mobile phones…and why not Google, which seems intent on advertising wherever it can (radio, magazines, newspapers, the Web) these days. Schmidt's proposal is not unlike some ISPs (e.g. Calgary-based CyberSurf) attempted a few years ago by offering free access if you agreed to have their ads appear in your browser. In terms of what segment of the wireless market this would be targeted at, you have to assume its customers with lower monthly bills as opposed to a power user who thinks nothing spending $100 a month on service. If advertisers are willing to foot part of the bill and consumers are willing to accept targeted advertising, I doubt the carriers would care much as long as they generated the same amount or more revenue. Tags: Google, Cybersurf, Advertising, Eric Schmidt