GPS creates new revenue and Google knows it


With Google’s announcement that it is entering the mobile phone market with location-based services it’s clear that Google is expanding its highly successful advertising services to the mobile phone platform.
With the “development of Android”, a platform created for mobile devices by ”Google Inc., T-Mobile, HTC, Qualcomm, Motorola and others“ known as the Open Handset Alliance, Google is positioning its multi-billion dollar empire to expand its core ad business into mobile markets worldwide.
Location-Based Advertising offers Google a significant opporunity to own the mobile market and they’ve taken the right approach to ensuring their success by involving communities of users to help in developing ”the first complete, open, and free mobile platform.”
Location Based Advertising [also known as Location Based Services or LBS] creates new revenue streams from location-relevant advertisements (audio and/or audio/video, text and multimedia) from national, regional, and local partners expanding their marketing programs into new media channels. This is a compelling value proposition for advertisers who are cutting back on their TV advertising spend due to decreasing ROI.
In a research report conducted in 2006, the Association of National Advertisers (ANA) and Forrester Research, Inc. found that “78% of marketers feel that traditional TV advertising has become less effective in the past two years.“
Advertisers are looking for new media channels that reach targeted markets. LBS offers a new frontier for enterprising companies looking to “entertain, inform, build brand awareness, create loyalty, and drive purchase decision among their target consumers through LBA“.