Google Wins AdMobs Hand, to Others Dismay

By Clint Boulton  |  Posted 2010-05-22 Print this article Print

"As mobile phone usage increases, growth in mobile advertising is only going to accelerate," wrote Susan Wojcicki, vice president for product management at Google. "This benefits mobile developers and publishers who will get better advertising solutions, marketers who will find new ways to reach consumers, and users who will get better ads and more free content."

AdMob founder and CEO Omar Hamoui similarly enthused, noting that "we are excited to get to what's next and to start working with Google to develop new products and services for our advertisers, developers and publishers."

Not every party was happy with the FTC's decision. Simon Buckingham, CEO of mobile app maker Appitalism, lamented: "Allowing Google and AdMob as the clear No. 1 and 2 players in the mobile advertising market to merge will dramatically increase the cost of advertising for app developers."

Consumer Watchdog advocate John Simpson said the deal was bad for consumers and accused Google of pulling political strings on Capitol Hill to get the OK for the deal.

"Clearly Google is willing to pull in political chits from the White House to influence FTC deliberations. Did the White House attempt to influence the AdMob decision? The public deserves to know," Simpson said. 

As part of its scrutiny of the acquisition bid, the FTC spoke to Google rivals, mobile ad players and other industry experts to gauge whether or not Google's bid would be help or hinder competition. Mobile ad players and other industry experts blogged that the FTC did not have a firm grasp of how the mobile ad market works.

The FTC, whose five commissioners voted to approve the deal, defended its actions and vowed to keep a close eye on the mobile marketplace, noting that mergers in new markets like mobile advertising should get the same antitrust scrutiny it levies on those in other markets.

Looking forward, the approval allows Google and Apple to more aggressively pit their respective Android and iPhone platforms against one another in the smartphone space. Armed with AdMob, the premier in-app ad provider for the iPhone, Google expects to better challenge iAd in the future.



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