Google Looks to Expand its Mobile Advertising Presence With the Purchase of AdMob

Google is on the acquisition trail again, announcing recently that it has purchased AdMob, a mobile advertising firm for a cool three quarters of $1 billion. Google is most definitely investing in the future of mobile marketing, touted as the next significant development in the future of Internet browsing.

AdMob, being the world’s largest mobile advertising platform, negotiates with publishers and developers on one side and advertisers on the other, seeking to find buyers for ad space on the ever-increasing number of smartphones that we find in our pockets. Google is the supreme expert at monetizing webpages as we know and it is only a natural progression for them to move into the fertile ad space frequented by mobile telephone users.

Google is already actively involved in mobile search advertising, it’s forte in the non-mobile market and has said that growth this year is significant, with a 30% increase in the third quarter of 2009 alone.

Google’s own operating system, Android is gaining market share among mobile phone users, although it lags behind leaders such as Apple’s iPhone. Using the AdMob technology, Google will be able to provide a platform for advertisers to deliver their message on mobile specific websites. Dot mobi domain names and platforms are surging in popularity, as they are tailor-made for the specific browser experience.

Webmasters will now be able to create applications and mobile versions of their sites with additional monetization options provided through this AdMob deal. The company boasts high-level advertisers including Coca-Cola and serves more than 8.5 billion mobile banner or contextual ads per month, worldwide.

As the mobile experience develops, Google is betting on an interactive future and a consumer’s willingness to accept ads within their precious mobile phone screen space. If the gradual decline in the growth of desktop online advertising continues, the number of display ads contained within delivered content on smartphones is sure to increase dramatically. Today however, Google estimates the market to be only $416 million, as according to a recent report from researcher eMarketer, which really puts a spotlight on the price that Google paid for AdMob. Clearly Google believes in the future of this medium.

Will consumers expect and merely accept intrusive ads on their smartphones?

Matthew Toren