Google already has a considerable hold on the online advertising world. The buying of AdMob signals its interest to capture the advertising market in the mobile world as well.
Display of advertisement on mobile phones is in a nascent stage, but it is growing fast. Google’s acquisition of AdMob would give this growth a strong boost.
Combining the best of two companies
AdMob is an impressive Silicon Valley success story. Founded by Omar Hamoui 2006, AdMob is a dominant player in the mobile phone advertisement and has recently entered the Android phone advertisement area.
Google hardly needs any introduction. Google’s Android smart phones have elicited a positive response from users and have become popular. The company found it wise to use AdMob’s technology for advertisement on the Android platform.
Both the parties are happy over this friendly takeover. AdMob CEO Omar Hamoui is excited about the developments. “I'm obviously excited, and not only for our customers, partners, and employees. I'm excited because I believe this will be an important moment for everyone involved in producing, consuming, or monetizing engaging products on mobile.
“The truth is that the mobile industry has had no shortage of creative energy, amazing products, and talented entrepreneurs. But until now, it has always felt like those of us involved in this space played second fiddle to our online brethren. I believe that time is over,” says he in his AdMob blog.
Reposing great faith in Omar and his team at AdMob Google’s executives, Susan Wojcicki, vice president, Product Management, and Vic Gundotra, vice president, Engineering, express similar feelings in their company blog.
They state together, “Despite the tremendous growth in mobile usage and the substantial investment by many businesses in the space, the mobile web is still in its early stages. We believe that great mobile advertising products can encourage even more growth in the mobile ecosystem. That's what has us excited about this deal.”
One-stop shopping
Google will now be able to offer a unique shopping experience to advertisers, facilitating advertisement both on websites as well as mobile phones, including mobile phones using the Adroid platform.
Though Google has DoubleClick Mobile, an ad delivery system for mobile websites, it doesn’t have its own ad network. It depended on various ad networks including AdMob. The buying of AdMob would allow Google to have direct control over its mobile ad delivery service, which would benefit the advertisers.
Google could have developed the technology on its own, but that could have been time consuming. Acquiring the readymade set up, the company is very optimistic about the innovations and product developments that this deal could lead to.
As is always the case, Google expects some government scrutiny in the U.S. on this deal. The company is ready to face the tiny consequence for its huge impending success.
Post new comment