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Google’s biggest threat may not be Microsoft or Yahoo! but cell phone users. More and more people around the world are using cell phone to browse the web which means the no. 1 search engine Google must do some thing to cope with less space to place ads.
As more people use cell phones and their tiny glass screens to gain access to the Internet, Google and its fellow online advertisers will have less space, or what’s called ad inventory, to place marketing messages for customers. Google makes money selling ad inventory. And its ad inventory is diminished on a cell phone.Google can now fit about 10 ads on a standard computer screen. On the other hand, if you type in a search query at google.com on your cell phone you get only one or two paid ads in response.

Imagine the horror that would befall your business if a large slice of what you sell suddenly disappeared. A similar fate could befall companies that depend on online advertising, as small screens become the gateway to the Internet.

Of course, no one’s suggesting that consumers will abandon standard computer screens overnight. And early research shows that mobile advertising may be more effective than standard online advertising, suggesting that it will be more lucrative for the companies that rely on it. Still, the shift is coming fast enough that Google must get prepared.

Google may redesign cell phone software to expand ad “shelf space, as In November, Google announced it was launching an Open Handset Alliance to design a new operating system, code-named Android, which would provide a “truly open and comprehensive platform” for cell-phone users. A few scratched their heads as to why Google would get into the cell-phone interface business but now it all makes sense as web screens will soon be two inches wide, and Google wants a say in what fits on that tiny screen.

The unveiling of the Android platform on 5 November 2007 was announced with the founding of the Open Handset Alliance, a consortium of 34 hardware, software and telecom companies devoted to advancing open standards for mobile devices. When released in 2008, most of the Android platform will be made available under the Apache free-software and open-source license.

The platform is adaptable to both larger, VGA, 2D graphics library, 3D graphics library based on OpenGL ES 1.0 specifications, traditional smart phone layouts.