Google developing ad service for e-mail?

An Interesting, or perhaps, scary Reuters article says google is developing a service that could dramatically extend the reach of its lucrative keyword-based advertising by linking such ads to e-mail. They recently made several e-mail related acquisitions, is working on a way to serve advertising to an e-mail at the moment it is opened, people close to the company said.

“I’m sure Google is getting more and more concerned about locking in users. It wouldn’t surprise me if they did something very sophisticated with e-mail,” said Danny Sullivan, editor of SearchEngineWatch.com, who tracks the industry.

See Also: Yahoo and Google: Cold War redux. “Search has become that thing that we lost and now we’ve found again,” Gaw says. “It’s a Prodigal Son.”