Canadian Business Magazine has an excellent Q&A with Google's Tim Armstrong. Here are some choice excerpts that show where Google's headed and why.
Canadian Business: What are some other emerging trends you're seeing in Internet advertising?
Tim Armstrong: Social networking will be a big part of online advertising in the future. There's also going to be a lot more analytics beneath Internet advertising. It's still hard to measure how different types of online ads and targeting techniques affect a consumer's perception of a brand. We're also excited about mobile opportunities.
CB: How big could mobile advertising become for Google?
TA: It will vary depending on the country. For example, in some developing countries, the infrastructure is being built more for cellphone access than stationary computer connections, and some people are skipping the computer generation altogether. We've done a lot of mobile testing in Japan, which has done a nice job of building high bandwidth access for cellphone users. I don't think one mobile search will eliminate one computer search or interaction on the web. Consumers have different needs when they're using those devices.
CB: How will the advertising industry change in the future?
TA: Advertising over the last 50 years has been about coming up with a big idea, planning around it for a year, then launching a six-month or year-long campaign for a product or service. In the future, advertisers will come up with 10, 100 or 1,000 creative messages for their products and services, then run, test and optimize them in real time. Campaigns won't be based on a time schedule, but on consumer behavior patterns.