Google AdMob Bid Galvanizes the Mobile Ad Industry
Google woke up the mobile ad market by offering to buy AdMob Nov.9, challenging moves made by Microsoft, Yahoo and AOL in the last two years. Google picked AdMob from a crowded field that includes Millenial Media, JumpTap and others. So, are the other mobile ad network players indignant or scared? No. The general belief is that the mobile Web ad space is a green field, and that Google's purchase of AdMob will pave the way for Internet companies to strike deals with others in the mobile ad network long tail. Analysts and executives from Millenial and Greystripe weigh in.News Analysis: While Microsoft, Yahoo and AOL have all purchased mobile ad specialists in the last two years, the remaining players have been waiting for something, anything to galvanize their tender green field and open the door for more partnerships with Internet giants. Google may have granted their wish by agreeing to buy mobile ad technology provider AdMob for $750 million in stock.
AdMob is a leading exchange for mobile display ads and ads served within applications for platforms such as the leading Apple iPhone smartphone, Google's Android, Palm, RIM and Nokia. Google already pairs text ads with its search engine on mobile phones, similar to the way it does on desktops, but it has yet to crack the mobile display ad or in-app ad nuts.
Kelsey Group analyst Michael Boland said AdMob is one of the handful of mobile advertisers, including Millenial Media, Jumptap and smaller startups, where the majority of mobile online ads are being spent. Since forming in 2006, the startup has been a one-stop shop for Land Rover, Ford, and Volkswagen to strike ad deals with publishers.