The price tag for mobile search ads will surpass that of desktop-based ads, according to Google engineering VP Vic Gundotra.
During a webcast for analysts, Gundotra cited the surge of smartphones as the reason for his prediction. He noted that, in the last two years, the number of Google searches done on phones has increased by a factor of five. He also said that the company will aim to produce more relevant ads that will make use of burgeoning smartphone technology, Reuters reports. It was hinted that Google might focus on the GPS applications that can pinpoint a user's whereabouts.
Google has made a flurry of moves on the mobile front. In January it began selling the Nexus One, a Google-produced smartphone that uses the Android operating system. Last November, it announced plans to acquire mobile marketing firm AdMob for $750 million. The purchase is now under regulatory review.
Gundotra's webcast came during a swell of speculation over Google's status in China. The company has announced that it will resist any form of censorship demanded by Chinese government. When asked about the company's mobile plans in China, CFO Patrick Pichette said that Android was available to everybody and should "flourish" there.
