Google recently announced its acquisition of AdMob, a leading mobile network that covers the Apple iPhone and other mobile platforms, including Android. The deal was worth $750 million in stock and serves to validate the continued growth of mobile marketing and advertising.
Google said that the acquisition of AdMob gives the company more expertise in a market that is expected to grow rapidly over the next several years. Apart from that, however, it solidifies the entry of a major player in mobile marketing, the power, reach, and value of which more and more industry experts are beginning to recognize. After all, despite today’s difficult economic climate, mobile platforms continue to grow. With the move, Google demonstrates how committed and serious the company really is about the mobile advertising and marketing industry.
What are other implications of this acquisition? One is the potential money that lies in mobile applications. iPhone, which has an app for almost anything, can encourage developers to monetize their works with mobile advertising. Google’s deal is also bound to accelerate mobile media buying and mobile revenues. While the pie of mobile advertising spending remains somewhat fragmented now, Google – for which advertising is one of the biggest revenue streams – might just give it major restructure.
It’s no wonder then that even AdMob’s competitors and other players in the industry have received this news with excitement. Better products, tools, and strategies are likely to emerge from this deal. Google and AdMob may be the headline now, but we can expect the rest to follow suit.