Google acquires AdMob
Google is acquiring AdMob, one of the world’s largest mobile advertising networks, for $750 million.
AdMob makes technology for serving display ads on mobile phones, and counts 15,000 mobile websites and applications in its network. It also offers advertisers the ability to place ads on mobile websites and within specialised smartphone applications.
The deal represents the third largest acquisition in Google’s history, behind the 2008 acquisition of DoubleClick for $3.1 billion and the 2006 acquisition of YouTube for $1.65 billion.
Google executives declined to say whether the deal would have a positive or negative impact on Google’s profitability, or provide details about revenue expectations.
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
However, 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, 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.