Archive for the ‘Mobile Search Advertising’ Category

Facts About Google’s Purchase of AdMob

November 9, 2009

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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Local Online Advertising Spending Up?

November 3, 2009

eMarketer has published predictions for the online advertising industry over the next five years from two sources with conflicting points of view.

Piper Jaffrey predicts a compound annual growth rate of 9% for local online ad dollars compared to 4% for national internet advertising spending.

Local Online Spending

Local Online Spending

Borrell Associates on the other hand predicts a much smaller 2.9% compound annual growth rate over the next five years for the local internet advertising market.

From eMarketer:

While Borrell believes the local online market is approaching saturation, Piper Jaffray indicates in its report that small businesses will begin to catch up with consumers online, bringing significant growth to the local online sector and moving local dollars from offline to the Web.

Piper Jaffray considers lead generation the primary goal of local advertising, and suggests that mobile presents a major opportunity on that front. With online search the preferred method to find local business info, and consumers highly connected to their mobile phones, especially during the weekends, the research firm predicts huge growth in mobile search spending through 2012.

US Mobile Paid Search Spending

US Mobile Paid Search Spending

“Local lead gen companies will play a key role in bringing small businesses into mobile advertising,” according to the report. “Small businesses need to understand that mobile can be as valuable a channel as online and lead gen players be the educators.”

While each analyst has well thought out and reasoned positions, I think both of their predictions will be proven wrong!