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Google sees surge in Web use on hot mobile phones

SAN FRANCISCO (Reuters) - Google Inc has seen an acceleration of Internet activity among mobile phone users in recent months since the company has introduced faster Web services on selected phone models, fueling confidence the mobile Internet era …

Reuters Eric Auchard

Context & Ripple Effects

Google had already reported a summer rise in mobile usage in 2007, followed by a sharp increase in traffic from iPhones in January 2008. The acceleration tied to faster Web services on selected handsets gives those earlier signals a product-performance explanation rather than treating mobile demand as a single-device anomaly.

The company had also introduced AdSense for Mobile in 2007, so growing phone-based Web activity matters not only for search reach but for the volume of mobile pages on which Google can sell advertising.

First-order effects

  • Google gains more mobile search and Web-service usage from users of the selected phone models, strengthening the case for further investment in faster handset experiences.
  • Users of those handsets face a more practical mobile Web experience, making Google’s search and destination-style results more likely to be used during phone sessions.

Second-order effects

  • AdSense for Mobile publishers and advertisers gain a larger potential audience as more phone Web sessions create additional mobile advertising inventory.
  • Phone makers and mobile-service partners seeking Google traffic have a clearer incentive to support faster access to Google’s Web services, rather than treating the mobile browser as a secondary feature.

Third-order effects

  • If usage continues to rise across handset types, mobile search will become a distinct distribution channel for Google’s services and advertising, not merely a reduced version of desktop browsing.
  • The competitive advantage shifts toward firms that pair Web services with handset-specific speed improvements, increasing the importance of control over both the service layer and the mobile access experience.

The trend: Mobile Internet adoption is moving from isolated handset enthusiasm toward service-led usage growth, with speed and usable Web experiences determining which platforms capture attention and advertising demand.