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Cognitive Computing Authors: Zakia Bouachraoui, Pat Romanski, Yeshim Deniz, Liz McMillan, Elizabeth White

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Google targets mobile marketing business, buys AdMob

Google will be acquiring AdMob, a network for ads on mobile gadgets for $750 million broadening its advertising reach to include mobile advertising. Omar Hamoui, CEO of Admob launched the company 4 year ago and has been a pioneer in the way he has maneuvered the controls imposed by wireless carriers to produce an effective mobile network for advertising. The platform has allowed Independent apps developers to find cost-effective ways to sell their product in targeted spots. To date, AdMob has displayed 140 billion ads on mobile websites and applications and its revenue is expected to be anywhere between $45 million and $60 million this year. Google plans on leveraging AdMob’s headstart in the mobile ads space that pundits predict is going to explode in the next four years, and take a natural step sideways from its main source of revenue in online advertising.

Google has been taking several aggressive steps off late to boost its mobile strategy. In addition to its mobile Operating system, Android which has been widely adopted by device makers, Google is also said to be working on its own phone called Nexus One.

The deal is not sealed yet though. The acquisition proposal has been placed in front of The Federal Trade Commission which has requested for more information indicating that it might be concerned that Google’s growing dominance in the mobile segment could stifle fair competition. Google is quick to defend it’s position by referring to similar mobile ad networks from counterparts like Mojiva and AOL and pointing out that mobile ads market is not evolved enough as yet to be considered distinct.

 


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