Google Suggests Free Phones in Exchange for Ads

What’s the catch? In return for a free mobile, users will have to accept advertising. “Your mobile phone should be free," Schmidt said to Reuters. "It just makes sense that subsidies should increase."

Overly intrusive advertising would turn users off, so a subtle approach would need to be developed. The challenges will be getting advertising messages across and encouraging response with such limited screen space.

As mobiles evolve and become more like hand-held computers so the time users spend texting, calling, surfing the internet and downloading increases. Schmidt sees a time when consumers spend up to 10 hours a day on these devices making advertising subsidies viable.

Ultimately the attitudes of users will contribute to the success of Google’s forays into the mobile market. They are already experiencing backlash from YouTube users at its perceived commercialism of the site.

Tags: free mobile phones, targeted marketing