on advertising in SL... dont bother, unless you can create value (and how you're going to do that for the average consumer in SL is beyond... no fuck that you arent going t0), theres not point in trying to advertise. people dont just go places to be advertised at. well, except times square.
second, i read somewhere (probably /.) that google's shown a ad-based phone to retailers. its just a prototype but its definitely interesting. free phone, free text messaging, etc etc, except presumably you have to listen to some ad before you can make your call. will people go for this?
probably, free is often too cheap to give up. the real question is how easy it will be to circumnavigate the ads while still getting the free service. once you can hack the thing up, google goes out of the phone business.
i'm not sure they belong there to begin with. yes, they've always been a targeted ad company (whether or not you were aware of it), but where else are they going to expand, and how much of this are we ok with? would you wear free t-shirts that are billboards for some cheesy product? i mean, some people pay a lot of money to do that right now?
its an interesting move and we'll see what comes of it. they may have some success in the poor sector; i dont think middle-upper class people will be willing to put up with ads in their phones. on the other hand, phones are often the one status symbol some lower-class people can afford (just ride on any given bus for proof of this) so they may not go for it either.
and how do you target the ads? i can see this as a great way to sell condoms (whenever you call your girlfriend, trojan gets a 10 sec blurb on safe-sex), but otherwise....