Google Mobile Payments System Could Track Advertising Effectiveness As Well

Google's new Nexus S device is the first Google device to include built-in near field communications. Normally considered a way to support mobile payments, Google might also be angling for a new way of validating, measuring and quantifying the impact of mobile advertising. If Google's NFC system supports payments, as well as identity, location and payment, it might be able to better demonstrate to advertisers the effectiveness of advertising.

Sure, Google's mobile ad network can be used to deliver coupons and other offers to mobile devices. But the payment capability might be important for reasons other than "payment."

In mobile and local advertising, the last few feet between a consumer seeing an ad and stepping into a store to make a purchase is largely untraceable. But if the mobile ad or coupon could be linked to the payment through an NFC chip in your phone, then Google can begin to measure the full cycle of click-throughs to purchase.

In other words, Google might be able to document the link between advertising and offer and actual purchase behavior. Advertisers will like that.

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