Google Grabs AdMob To Push Further Into Mobile Advertising

[Posted by Neil Strother]

Google has just announced an all-stock deal to purchase mobile ad network AdMob for $750 million in a bid to solidify its position as the leader in mobile advertising.

By acquiring AdMob, the search giant gets a mobile ad network that has leveraged the power of the mobile Web and in-app advertising, particularly on the iPhone. Now, as more people adopt devices that mimic the iPhone experience (Androids, of course, as well as BlackBerrys, Palms, etc.), Google stands to gain from a growing audience that will be increasingly attractive to advertisers.

The deal also signals a shift in the landscape, and it will be interesting to see how competitors like Microsoft, Millennial Media, Quattro Wireless, among others, respond.

Big picture: mobile advertising remains a small fraction of the overall interactive marketing spend (see our forecast report if you are a Forrester client). Google, however, expects mobile to be a key growth driver in the coming years, and the acquisition of AdMob plays right into that strategy.

What's your view of Google's takeover of AdMob? Will it spur more spending on mobile by marketers? Or is it just an evolutionary step? Share your thoughts by posting a comment below. 

Comments

re: Google Grabs AdMob To Push Further Into Mobile Advertising

I just presented with the head of sales for Ad Mob at the iMedia Breakthrough Summit, and I've done work with them on our clients. I think the acquisition will do nothing but great things for spending with Ad Mob specifically. I'm sure their prowess in analytics/reporting across the platforms will be integrated quickly which will be additionally attractive. I think it's a great idea for Google and others to be making such purchases b/c the market may be small, but it's a space that represents critical next steps towards three screen convergence. Most importantly, Google is about to launch Droid and needs to get as close to add models within apps and app promotion as possible.If you like what I'm saying and want to chat anyone...our agency imc2 is at www.imc2.comIan