Google buys mobile ad network Admob for $750 million

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Started in 2006 by Omar Hamoui, Admob has grown to be one of the leading platforms for advertising to mobile websites. And now it belongs to Google. In a move that costs the Mountain View company some $750 million, they now have acquired a company that is both profitable and has a significant share of the mobile advertising market. The benefits to Google are pretty clear, especially as their advertising operations is one of their key income streams.

Hamoui has promised in a letter to Admob customers that the service is going to continue to innovate and suffer no interruptions in the handover:

 

AdMob’s people, products and tools will continue to work to deliver successful campaigns for you and to effectively monetize your mobile traffic – no interruptions. Our product and engineering teams will keep building great products for our customers. Our sales team will keep working with our thousands of advertisers to deliver successful campaigns. 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.

Google have set up a landing page for those interested to find out more about the deal (in addition to their blog post) which is at www.google.com/press/admob:

Mobile advertising is a rapidly growing and competitive space, and Google and AdMob are currently specializing in different areas. Though Google offers many forms of mobile advertising, its focus to date has been on mobile search ads, while AdMob's focus has been mobile display ads and in-application ads.

The largest desktop browser advertiser and the largest mobile web advertiser getting together is sure to raise the eyebrows of many - it's certainly a large amount of power to place under one roof and other players in the advertising market will now be wondering which direction Google are going to - will they increase the payments to webmasters to bring them further into the fold; or drop the advertising rates with a resulting loss of income for smaller ad networks.

It's good to see that money is still around for successful mobile companies, but all that money seems to be coming from one company, Google. I'm not sure that's a better thing than having no money in the system...

-- Ewan Spence, Nov 2009.