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Google is developing a service that could dramatically extend the reach of its lucrative keyword-based advertising by linking such ads to e-mail, people familiar with the matter said on Friday.

By moving into e-mail -- the Web's most-used program -- Google would open up a huge new market for its lucrative "sponsored links" advertising business that delivers ads tied to keywords in Web searches or on content pages, analysts said.

So, there's a mix of speculation of (1.) Google promoting using AdSense in emails (you'd see ads in your emails), and, (2.) creating an email web app, for example, googlemail.com which they registered in 2001.