ReadWriteWeb has discovered the existence of a stealth Google project, called DreamAds. It is a very ambitious project, topping even the wireless balloons which Google is also looking into. Essentially DreamAds is Google's latest plan to extend AdSense - this time into our dreams. It may sound far-fetched, but an inside source at Google told us that it is very possible thanks to the latest in cheap magnetic resonance scanning and mind-reading techniques developed at Stanford University. Our source also revealed the thinking behind DreamAds: Google is aiming to become the first company to monetize a totally wasted period of time in human life: sleep, which takes up almost 1/3 of our lives.

We discovered a reference to the DreamAds project via a piece of commented-out code on a hidden Google webpage that an alert reader sent us. We followed up with our inside sources at Google and it turns out that this project is real! We even have an exclusive concept design of the new product (see below).

How It Works

DreamAds appear only during your REM sleep, as a footer overlay to your dream. According to scientists, things that we see during our sleep are up to 10 times more influential than the things that we see in our real life. And this is exactly what makes DreamAds a potential cash-cow for Google.

DreamAds works with a very light apparel that you put on your head. It is said to be so light that you won't even feel it and so it won't disturb your sleep in any way. The apparel will be distributed for free, starting with a beta rollout in San Francisco - dates as yet unknown. Here is a concept drawing of the device, which we got from our Google source:


Full image

On the business model, we were told us that the ultimate goal is a CPA model (Cost Per Action), whereby ads are embedded into dreams so that users can 'action' them. However the current technology isn't that sophisticated. So in the first version of DreamAds, Google will start with a 'Cost Per Impression' based ad model.

Conclusion

This is an intriguing product that has the potential to take Adsense to the next level. Google will probably be able to make around $500 per DreamAds apparel user. And with the upcoming CPA version, the high relevancy could increase Google's revenues to $5,000 per person. Think about that: $5,000 * 1 billion users means an unparalleled distribution model for advertisers and a gigantic revenue source for Google.

Our source didn't confirm this, but we've heard a rumor that Google has already started a private beta program with a limited number of trusted testers in the Mountain View area. ReadWriteWeb will stay on top of this story and bring you updates as they happen. In the meantime, please share your thoughts in the comments.