Google acquires AdMob

Mobile advertising is the next blitz of the communication application industry that is driving venture capitalists in the telecom space and even global giants like Google. There is no need to re-emphasize that the telecom space is all aglow with millions of subscribers, which are being added every month. Given the growth opportunities that mobile advertising is offering, Google recently acquired mobile advertising firm, AdMob, the market leader in mobile web-based advertising.

The deal, worth $750 mn, has caught the attention of all stakeholders worldwide who are waiting for the rollout of next ambitious plans by Google. The AdMob deal isn't the first big deal in the long list of acquisitions that Google reportedly made from the last few years. In December 2007 it bought DoubleClick to strengthen its position in display advertising. Google is getting stronger in mobile search and its latest deal with AdMob speaks volumes about its seriousness to dominate even the mobile marketing space. AdMob serves more than 8.5 bn mobile banners and text ads per month across a publisher network of 15,000 mobile websites and applications in 160 countries. Set up in 2006, AdMob has a strong track record of campaigns with leading brands.

profile of AdMob was strong enough for it to emerge as the best option for Google to gain the deal. AdMob runs its mobile advertising network across thousands of websites, serving up ads from big names such as Ford, Coca-Cola. It also collects and publishes data on mobile trends.

possible reason that made Google go for this ambitious acquisition is best explained by Eden Zoller, principal analyst, Ovum, “The key selling point of AdMob has been its willingness to serve ads across a wide range of device platforms, enabling advertisers to reach the broadest base possible and this is one of the reasons why AdMob has one of the largest mobile ad networks in the business.” The most dominant online space search engine dominates the lucrative online advertising and with this deal, it has set the stage for the tough competition for mobile advertisers as well.

Mobile advertising, which is still in its nascent stage, is rapidly building up its business with the development of smartphones and i-phones. AdMob founder, Omar Hamoui in his blog said about the mobile space, "The truth is that the mobile industry has had no shortage of creative energy, amazing products, and talented entrepreneurs." It will now be for Google to integrate the advantages of mobile advertising with its existent structure.

archanasi@cybermedia.co.in