It's no secret that a bulk of Google's revenue relies on its advertising business, and that's a business that could very likely come under attack from European mobile operators as they reportedly begin the planning stages of installing ad-block software on their mobile phones. While not currently in effect, this new software being developed by a startup company called Shine, would not only be affecting Google but also any other companies, websites, or applications/games which utilize mobile advertising as a part of their means for profit. The goal though according to the Financial Times is to target Google's mobile ad business in an attempt to get them to negotiate terms for investing revenue in the mobile operators.
At the moment, details on when this crusade on mobile advertising could begin is unknown as Shine and the mobile operators it's said to be working with are still in discussion on how they should go about the ad-block process. The blocks could be of the more limited sort only targeting certain types of ads or Shine and the mobile operators could end up deciding on a blanket ban that covers pretty much a vast majority of ads, save for those which pop up in social feeds such as Facebook and Twitter. The new software could also end up giving customers of the operators included the option to utilize the software or to leave it be, according to anonymous sources, although it isn't clear whether or not an "opt-in" route will be selected.
Ad-block software is nothing new, and neither is online advertising, but mobile online ads are somewhat of a new frontier over the last few years as more and more people begin to use smartphones for online access instead of their laptops or desktops. This has led many companies, Google included, to start ramping up their mobile advertising efforts in an attempt to keep up with advertising revenue gains which used to be picked from traditional online ads through regular computer browsing, and the business of mobile advertising is good. So good that some mobile operators apparently want a piece of the earnings. With this new ad-block software potentially being put to use though, if a blanket ban is actually imposed it could hurt more than just Google even if that is potentially the main idea for using such software in the first place. What this new initiative could come down to is a means to an end. A course of action dictated by the mobile operators in Europe who are hoping to scoop extra revenue from Google and other mobile advertisers.