Google expands cell ad program to affiliated sites

By Eric Auchard

SAN FRANCISCO (Reuters) - Google Inc expanded its widely used AdSense online advertising service on Monday to allow affiliated Web site publishers to target ads at Internet users on cellphones as well as computers.

The leader in computer-based Web search and advertising has begun allowing hundreds of thousands of affiliated Web sites that carry advertising sold by Google now to run contextual advertising targeted at mobile phone users.

The long-anticipated move by Google lets Web site publishers begin generating ad revenue when consumers view ads on their sites via their mobile phones.

"Everything we have done in the PC area can be extended to mobile phones," Dilip Venkatachari, product management director for Google AdSense for mobile phones, said in an interview. "The needs are similar."

Those needs include new money-making opportunities for Web site publishers and the need of advertisers to find new ways to reach consumers, coupled with the willingness of some people to tolerate advertising on phones in exchange for free services.

AdSense for Mobile is intended for AdSense customers who have Web sites specifically for mobile phone browsers.

Like other AdSense products, mobile text ads run on an auction model. The system automatically reviews the content of publishers' mobile Web sites and delivers text ads that are relevant to the Web sites' audience and content. Publishers earn money whenever mobile users click on the ads.

Google stands to make money on transaction fees only when mobile phone users click on their ads, similar to the way its online advertising service works on computers.