Google Seeks Mobile Mojo

Yesterday, Google took another big step toward trying to dominate the mobile Internet search ad market when it announced that from now on, its AdWords service would be available on both the iPhone and the T-Mobile G1 phone. As CNet points out, advertisers will now be able to embark upon the same advertising campaign as they do on desktop and laptop computers, without having to retool the ads to conform to the mobile Internet's typical scale: "Google's pitch is any advertiser can run a single ad campaign across all Internet-enabled devices. They can then analyze the results on either platform to determine where their ad is receiving the most or best response."

Intriguingly, ZDNet senior editor Sam Diaz uses the unveiling to pronounce Google to be in serious trouble. Diaz suspects that the newly tweaked AdWords may just be the latest in a long line of products Google has failed to really monetize; think YouTube or Google Apps. In fact, he argues, Google really just has one product—search ads—and the future of that market is getting a little dim. Diaz cites Global Equities Research analyst Trip Chowdry, who claims that the recession is cutting into the search ad market, and Microsoft is already emerging as a serious competitor. Moreover, Web users may be simply getting better at tuning out the search ads and focusing on the search results they want; in other words there may come a day when search ads simply aren't effective anymore. This may be the first time we've heard of anyone claiming that Google, which has rendered so many traditional business models obsolete, may be about to watch its own era come to an end.

On the other hand, Diaz at least tries to end on an up note. "In that sense, it's reassuring to know that Google recognizes that mobile—specifically smartphones that are often used as portable computers—is the place to be," he writes. "In a tough economy, with ad-spending and consumer confidence down, it will be interesting to see if a mobile strategy can help Google can [sic] maintain its mojo during the storm." Way to give it a shot, Sam.