European Carriers Hatch Plan To Block Mobile Ads To Extort Money From Google

The mobile ad space is expected to grown to nearly $69 billion this year, which would be triple the amount that advertisers spent just two years ago. With all that money up for grabs, there's a war brewing between mobile operators and companies like Google and Yahoo that benefit from ads. Mobile operators want a piece of the piece, so several of them are reportedly planning to block mobile ads on their networks.

Apparently the grand plan is to force Google into sharing the revenue it generates from mobile ads. Google currently enjoys the lion's share of mobile ad dollars, collecting $60 billion a year from search, YouTube, and and its various services like DoubleClick, according to a report in the Financial Times.

Google Phone

Google is aware of what some mobile operators are planning to do, and suffice to say, the company isn't all that happy about it.

"People pay for mobile internet packages so they can access the apps, video streaming, webmail and other services they love, many of which are funded by ads. Google and other web companies invest heavily in developing these services — and in the behind-the-scenes infrastructure to deliver them," Google told FT.

The blocking technology that mobile operators are planning to use was developed by Shine, an Israeli startup. Shine's software is capable of blocking most forms of advertising from loading in webpages and apps. According to Shine's marketing boss, the software is justified because the "online advertising is out of control," with digital ads chewing up anywhere from 10-50 percent of a mobile user's data plan.

Show comments blog comments powered by Disqus