Google's anticipated move into mobile advertising came one big step closer to fruition today, as the beta version of Mobile AdSense opened to a broader range of application developers after initial testing with a group of ten apps, including Shazam and Urbanspoon, proved successful. Mobile AdSense will provide targeted contextual ads based on location, keyword, or demographic, and marketers can bid for key placement on a particular mobile app.
Right now the beta trial is open to iPhone or Android developers generating 100,000 page views a day, so the pool of potential users is still restricted. But once Google grows comfortable with its ability to consistently target and contextualize ad placement, it can turn Mobile AdSense loose on the vast catalog of advertisers already using AdSense for online marketing. Right now, Mobile AdSense is a separate business, but when it's fully integrated into AdSense's larger online marketing packages, not only does Google stand to make a bundle, but the bidding should increase for top placement on popular apps.
For app developers and users, this is key. Developers will likely find it easier to place advertisers within their apps, opening up fresh revenue streams. If developers can make more money from advertising, the price of apps should decline, hopefully motivating developers to offer more products for free in an effort to boost ad exposure. Essentially, if app developers are making more money from ads, everybody wins. Especially Google.