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Mobile advertising is predicted to see massive growth within the next four yearsToday’s big news comes from the Google camp in the form of a $750 million deal to acquire AdMob, the mobile ad network that has seen impressive growth in just a 3-year period. While overall spend on mobile advertising is nominal in comparison to spend on regular search and display, the trend towards mobile phones becoming personal computers is well on its way, and the amount marketers spend on mobile search can only increase as our knowledge of the space and metrics we use to we understand it become more sophisticated.

Google’s acquisition of AdMob transforms Google into an all-in-one solution for marketers looking to spend their dollars online; assuming the deal closes (it will be scrutinized by the FCC as most of the search giant’s big moves are), Google will be in the position to place both display and search ads on regular and mobile sites, as well as ads in mobile applications, making it an even mightier force in the online ad space, and likely giving the FCC even more reason to watch Google like a hawk.

According to Google’s press release, AdMob was specializing in display and in-application mobile ads, while Google was focused mainly on search. This deal gives Google yet another competitive edge in a market that is expected to see revenues as high as 3.3 billion dollars in 2013, according to eMarketer.

Whether mobile search meets the industry’s expectations remains to be seen, but I am more interested in how mobile advertising will change the user experience. While I do use my smart phone in more ways than I did a year ago, I don’t see myself clicking on ads while checking for directions, looking for a good restaurant or checking my email, the Lakers score, or the news.

However, as Google stated in its press release, this deal will likely benefit users by providing them with more free or inexpensive mobile applications, and that is something I can appreciate. I don’t have an iPhone, but a Samsung Propel, and there are lots of apps available for my phone that are too costly to deem practical. If innovation in the mobile ad space gives me more free stuff, I am all for it.

Do you click on mobile ads or do you ignore them? Will this deal help keep Google on top of the mobile ad market or will Yahoo/Bing be able to gain a competitive edge? Post your thoughts below!

Comments

2 thoughts on “Google gets bigger, acquires mobile ad network AdMob
  1. Matt says:

    Lest we forget Google’s acquisition of dMarc back in 2006:

    http://www.google.com/press/pressrel/dmarc.html

    Eerily similar… hundreds of millions of dollars for an ad network in an unproven market. It didn’t work out then, and I don’t see it working out now.

  2. MMonahan says:

    I’d say this was a smart move on Google’s part, considering I read this post and commented on it all from my phone. The user base for smartphones is going to grow for years to come.

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