Google acquires AdMob
submitted by markodonoghue on 12 November 2009
Google are in the middle of acquiring AdMob which is one of the world's largest mobile advertising networks, for $750 million.
Google wouldn't just spend $750 million on a company that would pretty much die out and never really find its feet on the ground, that's not Google's style.
AdMob is a company that display ads on mobile phones and counts 15,000 mobile websites and applications in its network. It also gives advertisers the chance to place ads on mobile websites and within specialised smartphone applications. As we all know, the smartphone world is only going to get bigger.
AdMob will be added to the list of companies acquired by Google, in third place, behind DoubleClick which was acquired for $3.1 billion and YouTube for $1.65 billion.
Google executives have declined to say if this AdMob deal would have any positive or negative impact on Google's profitability, or provide details about revenue expectations.
Google claimed in October that mobile searches increased 30% in the third quarter and the company has long maintained that there's big money in mobile search.
The overall mobile ad market is forecast to increase 33% next year to between $2.3 billion and $2.4 billion, according to Mike Wehrs who is Chief Executive of the Mobile Marketing Association. He says his figures included revenue for all forms of mobile advertising including text message ads.
While search is an important component of mobile ads, Wehrs said that ads that run inside smartphone apps are particularly popular at the moment.
"The first thing a company asks for when they go to an ad agency is how fast can you get me on an iPhone app," says Wehrs.
Once Google have got their hands firmly around AdMob, this is going to be big!
Submitted by:
Mark O'Donoghue
Associated Links:
http://www.pcpro.co.uk/news/353197/google-acquires-admob
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