Google's AdMob acquisition gives weight to mobile ads
Search giant Google (NASDAQ:GOOG) today announced plans to buy mobile advertising provider AdMob to delve deeper into the burgeoning market for mobile ads. The $750 stock deal is one of Google’s biggest since it acquired YouTube three years ago.
AdMob already provides mobile ads to several Android applications, but the acquisition will provide further integration between Google’s mobile presence and AdMob’s ad engine. It will also strengthen Google’s competitive stance against Yahoo! and Microsoft, as they all look to dominate mobile search and advertising. For AdMob, the tie-up with Google will substantially help AdMob’s competitive positioning against mobile ad players, including Enpocket, acquired by Nokia, AOL’s Third Screen Media and Microsoft’s own Screentonic.
Google already has its own online auction-style ad network, AdSense, and a mobile ad delivery system, DoubleClick Mobile, following its acquisition of DoubleClick in 2008. Both AdSense and AdMob operate on a cost-per-click business model, which requires billions of ad impressions to make it a business. Google said it is acquiring AdMob to strengthen its mobile ad offering and crack open a potentially lucrative market.
Even with the challenging business conditions, the vendor has grown on mobile in the past year. It also has its advertisements on Android’s biggest competing platform, the iPhone, since the launch of the original version, as well as placement with Research In Motion’s BlackBerry line of smartphones. Many in the industry believe the poor economic conditions will help the industry achieve more growth over the next few years as brands realign their budgets to mobile.
“I'm excited because I believe this will be an important moment for everyone involved in producing, consuming or monetizing engaging products on mobile,” wrote Omar Hamoui, CEO of AdMob, in a note on the company’s Web site. “The truth is that the mobile industry has had no shortage of creative energy, amazing products and talented entrepreneurs. But until now, it has always felt like those of us involved in this space played second fiddle to our online brethren. I believe that time is over.”
Hamoui started AdMob as a graduate school student in 2006, and while he attributes the rise of mobile innovation largely to Apple, he noted that the market today is much more advanced than it was when AdMob came onto the scene. There are literally hundreds of competitors of all sizes, he said, and he expects more to result from Google’s growing presence in the space. AdMob is not going away, though, Hamoui added. It will work with Google to accelerate the pace of innovation in mobile.
“Our product and engineering teams will keep building great products for all of our customers,” Hamoui said. “Our business development team will keep working to maximize ad revenue for the more than 15,000 mobile Web sites and applications that make up AdMob's publisher network. Our sales teams will keep working with our thousands advertisers to deliver successful campaigns, and our marketing group will keep pushing to get the word out about mobile. It's just that now we will be able to do an even better job for all of our customers.”
Want to use this article? Click here for options!
© 2013 Penton Media Inc.
In this Webinar you will learn how to create a real-time relationship with your customers, how to proactively improve the customer experience, and how to successfully target and cross-sell services to boost incremental revenue.
- Megabytes to Megabucks, Bandwidth to Business Models: How 4G Is Changing Everything
- How to Unplug Your Redundant Telco Apps To Save Money and Improve Efficiency
- When IaaS Isn't Enough: Service Provider Business Models to Drive Growth and Build Margin
- How to Transform Your Aging Telco Voice Network to Drive New Profits and Revenue
- Creative Licensing Approaches for Telcos & Their Network Equipment Vendors
- Smart Home Opportunity: Balancing Customer Data & Privacy
This paper discusses the rise of Diameter and benefits of Diameter Protocol.
- Conducting The Orchestration – Order Management at the Speed of Business
- Toward a Converged Network Edge
- Beyond Spam – Email Security in the Age of Blended Threats
- 6 Important Steps to Evaluating a Web Filtering Solution
- The Expertise to Protect You from Botnet and DDoS Attacks
- Seeing is Believing – Bridging the Order Visibility Gap
Service providers are under tremendous pressure to turn up new services faster then before and, at the same time,
to do it at less expense - and intra-office fiber is one of the biggest challenges in terms of both cost and service
From the Blog
Join the Discussion
Get more out of Connected Planet by visiting our related resources below:
Connected Planet highlights the next generation of service providers, as well as how their customers use services in new ways.Subscribe Now