A huge revolution in location-based advertising is soon to take place, according to the chief exec of Google.

Speaking at the World Economic Forum in the Swiss resort of Davos, Eric Schmidt said that mobile users could be affected by the soon-to-be truly mobile internet.

"It's the recreation of the Internet, it's the recreation of the PC (personal computer) story and it is before us - and it is very likely it will happen in the next year", he told assembled journalists.

At the moment, reports Reuters, analysts have been cautious about the future of mobile advertising, or advertising that targets where the phone users is, and consultancy Forrester predicting revenues of under $1 billion by 2012.

But, according to Schmidt, this is a massive underestimation.

He explained that Google wants to be a key player in this market by bidding for airwaves to launch an open US wireless network, which would see it competiting against established telecommunications players.

Analysts immediately responded by stating their concerns that Google would be over stretching itself as it would be a very expensive move tbut Schmidt dismissed this saying that location-based advertising - which could, for example, direct hungry travelers to nearby restaurants - would be "a very, very good business".