Increasing the Reach of Google's Advertising

Google is looking to become the dominant player in mobile advertising, just like they have been the leader in online advertising. Google hopes that making it easier for consumers to access the web from their cellphones and making the experience more like that of a personal computer will increase the reach of their advertising. Google said it will likely share ad revenue with the wireless carriers, according to the Wall Street Journal (11/6/07).

Energizing the Mobile Industry

"Just like the iPhone energized the industry, this is a different way to energize the industry," stated Sanjay Jha, COO of Qualcomm (NY Times). Mr. Jha also said Google's efforts will bring more Internet features to moderately priced phones. By allowing outside software developers access to their Android software platform, Google also hopes they will create new types of devices that have both cellphone and wireless Internet capabilities. "As a result of the platform, you'll be able to do amazing things on your phones that you've never been able to do before," says Google CEO Eric Schmidt. (USA TODAY 11/6/07)

Diversifying their Revenue Base

Google is going up against some strong competitors, but they certainly have the clout and resources to gain a significant foothold in the mobile marketplace. Google's surging stock price clearly indicates that Wall Street and investors anticipate that Google will be able to diversify their revenue base from new businesses outside of online advertising. In my opinion, mobile advertising has the potential to be as big as online advertising for Google. It will be interesting to see how Google's venture into mobile plays out over the next few years, since it has the potential to transform the industry.

Peter Koeppel is Founder and President of Koeppel Direct, a leader in DRTV direct response television, online, print and radio media buying, marketing and campaign management. With a Wharton MBA and over 25 years of marketing and advertising experience, Peter has helped Fortune 500 companies, small businesses and entrepreneurs develop direct marketing campaigns to increase profits.

Peter started Koeppel Direct in 1995 and has built it into one of the leading infomercial direct response media buying firms in the U.S.