Google picks up AdMob for $750 million; Targets mobile display ads

Google picks up AdMob for $750 million; Targets mobile display ads

Summary: Google said that it will acquire mobile advertising company AdMob in a deal valued at $750 million in stock.

TOPICS: Mobility, Google

Google said Monday that it will acquire mobile advertising company AdMob in a deal valued at $750 million in stock.

The search giant said the purchase will "enhance Google's existing expertise and technology in mobile advertising." See Google blog and statement.

With the move, Google is making a big bet on mobile display advertising. Google, which already occupies the market for mobile text ads, appears to be purchasing AdMob in an acquisition akin to its DoubleClick purchase. The message: Google wants to be a big display ad player on the Internet and mobile.

With AdMob, Google acquires a suite of mobile tools including an ad marketplace, analytics and metric tracking.

In a statement, Google Susan Wojcicki, vice president of product management, said AdMob has made "exceptional progress" in a short time in mobile advertising.

She added in a blog post:

Despite the tremendous growth in mobile usage and the substantial investment by many businesses in the space, the mobile web is still in its early stages. We believe that great mobile advertising products can encourage even more growth in the mobile ecosystem. That's what has us excited about this deal.

Google added that the purchase of AdMob will help it develop, serve, create and analyze mobile ads. The game plan with AdMob will hook up mobile display ads to Google's back-end infrastructure.

While Google gets some heft in a growing mobile market, AdMob needed a big brother too.

In a blog post, Omar Hamoui, CEO and founder of AdMob said:

We now operate in an environment that is much more advanced than the one we entered into a few years ago. There are literally hundreds of competitors, small and large, with different areas of focus and expertise. Lately, it seems that almost every week we hear about a new idea or company in the mobile advertising space. This has led to rapid innovation, and we're excited about the positive attention this deal will bring to mobile advertising. We have no doubt this will bring even more players into the space and accelerate all the innovation that is already taking place.

Indeed, it's highly likely that AdMob would have wound up competing with Google at some point. AdMob's master plan looks something like this:

It doesn't take a rocket scientist to figure out that Google is positioning itself in the same center of the ad universe. AdMob gets a nice payday, more resources and a big partner. Given the alternative---eventually being run over by Google---it's hard to turn down the deal.

Topics: Mobility, Google

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  • A company called "AdMob"? Really?

    Who really wants a "mob of ads" on their mobile? Screen real estate is short enough already. We don't need perpetual ads invading this space. Sorry.
  • Admob The New Adsense of Mobile?

    Well, this is pretty cool. I didn't have the slightest
    idea that the ads I were seeing on my iPhone came from
    one source. Admob is such a potential advertising firm
    that's when shaked-lightly could produce an extremely
    big (ROI) Return of Investment to BIG G

    Will Admob be The New Adsense for Mobile?

    You gotta love the timing of Google - having a recent
    release of Android powered Phones then buying this
    mobile-advertising firm.
  • Google has done two jackpots in one bang

    First getting the droid phone right and now getting mobile advertising strong

    perfecto totalus
  • Isn't this move by Google anti-competitive and monopolistic?

    So, Google goes and scoops up a competitor and everybody applauds them. But, if Microsoft had done the same, they would've been branded as evil and anti-competitive and monopolistic. Many people here and elsewhere would've been asking for the government to step in to stop the purchase of AdMob since it would reduce competition.

    Just saying...
    • Master Joe Says...

      That's the point. It's OK because it's Google. Apple can get away with the same kind of behavior. Just look at the iTunes/iPod monopoly. When you mention a name like Google, this kind of behavior makes you a hero. If Microsoft did the same, or even a lesser act, it woudl be attacked as being monopolistic. Mention Microsoft and Intel, and everyone boos, as though they are so evil. Mention Google or Apple, and they can do no wrong. Just look at the other Google article in the ZDNet Tech Update e-mail today for proof of that. More to the point, Google has suddenly gained a lot of popularity in the mobile phone industry, thanks to its Android OS and the Droid with Verizon Wireless. You think for one second that Google would be above pushing unwanted ads to every single one of thsoe devices? They wouldn't even bat an eyelash when the decision got made to throw an ad or two in just about every single app and aspect of the Android-powered devices. For all of those who say taht Google is the 1995 Microsoft, they're dead wrong. Both Google and Apple have become worse than Microsoft was in its darkest days, despite people refusing to admit that because, after all, they are Google and apple. We can't say bad things about them.

      --Master Joe
    • Maybe

      I wouldn't say so. Creating a monopoly isn't
      illegal [i]per se[/i], it's using that advantage
      to undermine competition that is. So long as
      nobody starts stipulating that Android + ads +
      Chrome OS...

      The web's an open platform, so I don't think you
      could do them much legal harm...
      • There are many different ways to eliminate competition...

        and swallowing them up through their purchase is one way.

        What is it about AdMob that Google could not have done on their own, or that they didn't already have?

        And it doesn't matter that the web's an open platform. If the competition can be bought off or bought up, then it can be done on any platform, open or not.
  • RE: Google picks up AdMob for $750 million; Targets mobile display ads

    I think Google is going to be too strong.
  • RE: Google picks up AdMob for $750 million; Targets mobile display ads

    See my other post. I'm no big fan of apple, on the
    contrary, but acceiving a monopoly is not illegal. I
    don't know how you could attack Apple on the iPod

    However, creating a closed platform like the Mac OS has
    should be illegal (in my opinion), but it isn't.
  • RE: Google picks up AdMob for $750 million; Targets mobile display ads

    OK. Now I get it. From the headline, I thought they bought someone that operates those billboards-on-trucks.
  • RE: Google picks up AdMob for $750 million; Targets mobile display ads

    Google should pick up itself, and start connecting to the real world. Requiring its staff to be accessible to the outside world for 10 minutes a week might just let them learn what is going on.

    They may well have picked up Admob for a song a while back. Or something far superior.

  • Did they also buy GizmoProject (Gizmo5)?

    Did they also buy GizmoProject (Gizmo5)?
  • RE: Google picks up AdMob for $750 million; Targets mobile display ads

    ptrjnd,good post!