Google to Acquire Mobile Advertising Firm AdMob

[MacRumors]

Google today announced that it has agreed to acquire mobile advertising firm AdMob in a deal valued at $750 million. AdMob is currently the world's largest mobile advertising provider and is utilized by many of the top ad-supported iPhone applications.

The deal will help Google in its efforts to develop more effective tools for creating, serving and analyzing emerging mobile ads formats. As this ecosystem continues to grow, the company expects these new marketing media to offer significant benefits:

- Advertisers will be better able to engage mobile users with AdMob's ad formats
- Publishers and developers will be able to monetize their content more effectively, which has benefits for the wider mobile ecosystem
- Users will see more relevant ads and ultimately get access to more ad-supported content and applications – improving their mobile experience

In a blog post about the pending deal, Google executives Susan Wojcicki and Vic Gundotra note the attractive market presented by iPhone and Android users for mobile advertising:

We've written in the past about how mobile phones are becoming an increasingly indispensable part of our daily lives, and we continue to see how great devices with full Internet browsers and vibrant app marketplaces are driving an explosion of usage. In fact:

- iPhone and Android users browse the Internet more often than anyone else [Morgan Stanley], contributing to Google's 5x mobile search growth over the past two years
- And a quarter of these same iPhone and Android users spend nearly 90 minutes per day using applications on their devices [AdMob]

Google has also posted an information site with full details of the proposed AdMob acquisition.

Article Link: Google to Acquire Mobile Advertising Firm AdMob

 

[Raidersmojo]

first yay

really dont want any ads when using apps but looks like this is the future regardless

 

[*LTD*]

So what does this mean for Android?

 

[macfan881]

haha all those Droid users will be geting spamed with ads I kid

 

[jav6454]

Google grows even larger and larger... soon, it'll eat all of us.

 

[Tilpots]

Google wasn't kidding when they said they'll get right back to spending and growing!

 

[iPhoney:)]

One day, everything will be Google flavored!

Apple needs to purchase Yahoo and give Google a run for it's money, their goal is complete world domination, they're worse than Microsoft!

 

[Rot'nApple]

Google grows even larger and larger... soon, it'll eat all of us.

Sooooo... 'Google' will be called "Gobble"!

Actually, Google will make their phones "free" by paying off the hardware manufacturers and cellular network carriers hosting the phones, so, no further need of paying full cost for unbroken phones, and no subsidized phones. Your free phones will be ad laced... want to see a video, first see a 15 second ad; want to play a music track, first see a 15 second ad, want to download or use an app, first see a 15 second ad, want to use your MMS, first see a 15 second ad before getting to the MMS... something like that I can envision coming from Google and don't forget to ad you Google "AdSence"! But your phone is free! AS for me...

 

[miknos]

LOL, that's funny but scary at the same time.

Hope I can use a decent adblock when this time arrive.

Ads are a necessary evil.

 

[ChazUK]

Some wild speculation here.

Google provide and make money from advertising.
AdMob provide and make money from advertising.
Google acquire AdMob.
Google makes even more money from advertising.

Android remains unaffected.

That's pretty much it.

EDIT: What does this news have to do with Apple and Mac Rumours anyway?

 

[RazHyena]

Getting bigger.

 

[supernaut]

Hasn't google already got enough market share in online advertising? Surely there should be some kind of govt inquiry into this before it completes?

 

[BJMRamage]

i chose negative, not that it might be bad for Apple, who cares, but that this means there will be MORE ads for everyone.

 

[Tilpots]

EDIT: What does this news have to do with Apple and Mac Rumours anyway?

Google will be serving a whole lot of ads to iPhone apps, not third party AdMob anymore.

To make it even more clear, Google's about to tell Apple: "All your ad supported app dollars are belonging to us."

Apple's making 30% of a subsidized advertising app. Google gets in there at the core business and takes a cut of the ad dollars right off the top.

 

[mspy]

AdMob buys AdWhirl then Google buys AdMob. I hope the features of Adwhirl don't get lost.

As an app developer I look forward to the "Google" touch they add to iPhone advertising both as a publisher and advertiser.

 

[ethana]

Apple's making 30% of a subsidized advertising app.

This is an incorrect statement. Apple takes 30% of revenue from every PAID app sale. They take nothing from FREE apps.

So the switch from AdMob to Google affects Apple in no way at all currently.

But in the future, if Google pays out significantly higher than AdMob does, many users will switch their apps from Paid to Free, because they can make more money that way.

Apple really won't care though. They are not in the App business to make money, they just use the App Store as a tool to sell more iPhones and iPods and get the Apple brand in the hands of more consumers. Hopefully that then translates into desktop computer sales increases, like buying iMacs.

 

[baleensavage]

"Google to acquire..."
I don't know about you guys, but those three words together are starting to send shivers up my spine. Google is turning into more of a Microsoft than Microsoft ever was. The really scary part is they still have a somewhat hip/outsider public image. At least Microsoft is recognized as the competition devouring behemoth that it is...

 

[Tilpots]

This is an incorrect statement. Apple takes 30% of revenue from every PAID app sale. They take nothing from FREE apps.

Thought that was obvious.

So the switch from AdMob to Google affects Apple in no way at all currently.

But in the future, if Google pays out significantly higher than AdMob does, many users will switch their apps from Paid to Free, because they can make more money that way.

Apple really won't care though. They are not in the App business to make money, they just use the App Store as a tool to sell more iPhones and iPods and get the Apple brand in the hands of more consumers. Hopefully that then translates into desktop computer sales increases, like buying iMacs.

My point was that Google is about to become an even larger beneficiary of the Apps store success. And Apple will care, alright. Think they like the flow of cash from their hard work going into Google's pockets? Me neither.

 

[tempusfugit]

$750 million is easy come, easy go kinda cash for google.

just another drop in the bucket....

 

[str1f3]

I wonder how they're able to buy AdMob after DoubleClick. At what point will the gov't or the EU consider this a monopoly on internet advertising. This is getting to be ridiculous.

 

[ChazUK]

Google will be serving a whole lot of ads to iPhone apps, not third party AdMob anymore.

To make it even more clear, Google's about to tell Apple: "All your ad supported app dollars are belonging to us."

Apple's making 30% of a subsidized advertising app. Google gets in there at the core business and takes a cut of the ad dollars right off the top.

Thanks Tilpots. This makes perfect sense now!

 

[Papajohn56]

I wonder how they're able to buy AdMob after DoubleClick. At what point will the gov't or the EU consider this a monopoly on internet advertising. This is getting to be ridiculous.

A lot of major news sites don't use AdSense, they use other networks like Pulse360. There are other ad networks out there.

 

[Wakashizuma]

Google is a major force now. They are almost worth as much as Apple and they control the web

Soon they come after Apple like Microsoft did back in 90s. Microsoft successfully defeated Apple and took control of the PC market. Lets see if Google can defeat Apple and make Anderoid a success!

 

[headsupftw]

Google will be serving a whole lot of ads to iPhone apps, not third party AdMob anymore.

To make it even more clear, Google's about to tell Apple: "All your ad supported app dollars are belonging to us."

Apple's making 30% of a subsidized advertising app. Google gets in there at the core business and takes a cut of the ad dollars right off the top.

Wrong on so many levels.

Apple does not make squat on an ad-subsidized app.

App Store is not Apple's core biz.

Even if google/admob gets to provide 100% of the iPhone ads (which is not going to happen), google won't be getting 100% of the ad revenue ldo.

 

[Tilpots]

Wrong on so many levels.

Another one?

Apple does not make squat on an ad-subsidized app.

Google will. Out of all the apps in the app store, not one paid app contains advertising, though? I don't believe it...

App Store is not Apple's core biz.

Right, it's Google's core business. And they're making this deal to make a lot of money from the iPhone hardware which is Apple's core business.

Even if google/admob gets to provide 100% of the iPhone ads (which is not going to happen), google won't be getting 100% of the ad revenue ldo.

Of course not. They'll get they're advertising fee, which adds up to quite a lot, enough in fact, to make people fear them.