This is an interesting move, as it is one of the first big acquisitions by Google in the mobile space. Much of their activity previously had been focused on trying to serve the mobile market be modifying or extending their existing online services. <\/p>\n

As Paul Palmieri<\/strong>, President & CEO, Millennial Media<\/strong> commented, “Today Google validated what many companies including Millennial Media have thought for years \u2013 that mobile is a different market with a huge potential for advertising; possibly a bigger opportunity than online media. We are happy to see a player like Google bring economies of scale to the performance advertising space in mobile.”<\/p>\n

There has for a long time been speculation about when AdMob would get acquired, and by whom. A few weeks ago when Google CEO Eric Schmidt said that they were going to pick up the pace of M&A, maybe that should have been a hint to the industry.<\/p>\n

AdMob has a very strong presence in the area of mobile display advertising, both for mobile web pages and also for in-application advertising. This makes the acquisition a particularly good match for Google, as they are quite strong in the mobile search ad area, but not display. <\/p>\n

Even after this acquisition, the one remaining sector of mobile advertising where Google does not yet have a strong offering is for SMS advertising. Google’s next acquisition?<\/p>\n

Looking at the numbers, it has been reported that AdMob’s revenues are getting close to a $100 million per year run rate. And as the standard split they give to publishers is 60%, this means that they should be seeing around $40 million of that to fund their 140-employee company.<\/p>\n

Commenting on the acquisition, Ben Tatton-Brown<\/strong>, CEO of mobile media agency RingRing<\/strong> said, “This acquisition is a milestone for our industry, and validates the potential of mobile advertising. And we are very confident for the future as we are still seeing rapidly increasing levels of spending in the mobile advertising market.”<\/p>\n","protected":false},"excerpt":{"rendered":"

The big news of the week is that Google has acquired leading mobile ad network AdMob for $750 million. AdMob says they will continue to operate the AdMob mobile advertising platform, but after the acquisition by Google they “will work together to accelerate the pace of innovation in this area.”<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[21,16,3,24],"tags":[121,43,79],"_links":{"self":[{"href":"http:\/\/www.mobiadnews.com\/index.php?rest_route=\/wp\/v2\/posts\/4128"}],"collection":[{"href":"http:\/\/www.mobiadnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.mobiadnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.mobiadnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.mobiadnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4128"}],"version-history":[{"count":0,"href":"http:\/\/www.mobiadnews.com\/index.php?rest_route=\/wp\/v2\/posts\/4128\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.mobiadnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4128"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.mobiadnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4128"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.mobiadnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4128"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}