Facts About Google’s Purchase of AdMob

Google has agreed to purchase AdMob for $750 million.

The acquisition will enhance Google’s existing expertise and technology in mobile advertising, while also giving advertisers and publishers more choice in this growing new area.

According to Google:

  • The deal will bring new innovation and competition to mobile advertising, and will lead to more effective tools for creating, serving, and analyzing emerging mobile ads formats.
  • This deal will benefit developers, publishers, and advertisers by improving the performance of mobile advertising, and will provide users with more free or low-cost mobile apps.
  • The mobile advertising space will remain highly competitive, with more than a dozen mobile ad networks. The deal is similar to mobile advertising acquisitions that AOL, Microsoft, and Yahoo have made in the past two years.
Types of Mobile Advertising

Types of Mobile Advertising

Google offers many forms of mobile advertising, yet its focus to date has been on mobile search ads, while AdMob’s focus has been mobile display ads and in-application ads.

Acquiring AdMob will help Google flesh out its advertising product offerings to both mobile search advertisers and the mobile search audience.

After the Google AdMob deal closes, both advertisers and publishers will still have many viable choices in mobile advertising.

Mobile Advertising Spend

Estimated 2009 Mobile Advertising Spend

Although eMarketer estimates that mobile ad spending will reach $416 million in 2009, compared with the nearly $24 billion that will be spent overall for online advertising, $51 billion on TV ads, and $38 billion on newspaper ads, the mobile search advertising market will remain a fraction of the overall advertising industry for the foreseeable future.

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