The FTC Approves Google’s Acquisition of AdMob

It has finally happened folks. The United States Federal Trade Commission has approved Google’s acquisition of AdMob. While this is something that we all knew would happen, there is an unexpected twist to the story. The approval was made possible because of Apple – Google’s arch rival. Incredible, don’t you think?

The FTC was reluctant to approve Google’s $750 million acquisition of AdMob because of just one reason – it thought the move would give Google an edge over all its competitors and make it a monopoly in the mobile advertising market. It thought the deal would make Google too big for any competitor to take on. Apple’s acquisition of Quattro Wireless in January, however, changed everything.

The acquisition of Quattro gave Apple a strong chance to dominate the mobile ad market. Moreover, an increasingly large number of people are using Apple iPhone and iPad to access the web on the go. So, the FTC decided that Apple’s deal with Quattro Wireless, coupled with the fact that the company has a significant presence in the smartphone market, will definitely mitigate the dominance of Google as a mobile advertising powerhouse and approved the latter’s acquisition of AdMob.

The FTC, in its own words, admitted that the decision was very difficult to make as the parties involved in the deal (Google and AdMob) are two of the most powerful mobile advertising networks in the world today. The regulators were worried about antitrust issues, which is one of the main reasons why they did not approve of the deal right away. The deal between Apple and Quattro Wireless changed their opinion and overshadowed their concerns. As a result, Google can now breathe a sigh of relief.

This, in my opinion, is the best thing that could have happened to the mobile advertising industry. Apple, which recently released the iPad, is poised to become a dominant force in the market and Google, with its Android OS, is already making waves in the market. As of now, the top players in the market include Apple, Symbian, Blackberry, Android, and Microsoft. The AdMob deal, however, gives Google a definite edge over its competitors.

The deal has made Google the largest mobile advertising network in the world today. As some of you already know, AdMob recently served its 200 billionth ad and serves, on average, 8.5 billion mobile ads every month. The company has its presence in more than 160 countries and has some of the biggest companies in the world as its clients. So, Google is all set to become the most dominant player in the market. Its competitors have their work cut out. It should be an interesting battle.

Categories: Cell Phone Advertising, Google, Apple.

0 comments.

Google Upbeat About The Future of Mobile Advertising

Depression or boom, good economy or bad economy, if there is one thing that you can bank on, it’s the performance of Google. The internet giant disclosed its first quarter results recently and the numbers were nothing short of incredible. The company saw a 35% rise in net profits ($1.9bn) and a 23% rise in total revenues ($6.7bn).

The lion’s share of Google’s revenues comes from online advertising, which is not very surprising. The company generated $4.4bn from ads on its own sites and $2bn from ads on third party sites. An interesting thing mentioned in the first quarter results was the success of mobile advertising.

Google considers mobile the ‘third axis’ and has asked its developers to focus on mobile advertising and technology. Eric Schmidt, in fact, has gone on record to say that the company encourages its developers to think ‘mobile first’.

Google is benefiting a lot from the growth of smartphones that can access the internet. The company also says that the launch of new products like the Nexus One has boosted the revenues considerably this year. Though no one knows the exact sales figures of Nexus One, it is said to be one of the top selling smartphones on the market today.

Google has been selling the unlocked version of Nexus One for $529 and the locked version, which comes with a T Mobile contract, for $179. Already, the phone works with AT&T Mobility and T Mobile USA’s 3G networks and other major operators like Verizon Wireless and Sprint Nextel are expected to support the device soon.

Google’s mobile operating system Android is also expanding its presence on the market rapidly. As of now, the OS is on 34 devices from 12 different mobile manufacturers. The company says that more than 60,000 Android devices are getting activated every day, which is quite a big number. The Android market now has more than 38,000 mobile applications and the number is growing by the day thanks to mobile app developers all over the world who are religiously working to come up with new, innovative apps.

The Google story can be summed up in just one sentence – so far, so good. Right now, more than anything else, the company seems to be focused on expanding its presence on the mobile market. While it is good news for mobile users, it is not so for Google’s competitors.

Categories: Cell Phone Advertising, Google.

0 comments.

Google’s Holiday Gift To You - Mobile Coupons

The holiday season has started. People are gearing up to buy lots of stuff. Businesses are preparing to increase their sales by offering plenty of offers, discounts, and more. In this situation, what can a company like Google do to help a customer like you? Very simple – they can help you find the best offers in town. And how do they plan to do that? The answer, again, is very simple – mobile coupons.

That’s right folks. Finding the best deals in town this holiday season has become a lot simpler. Holiday season sales, discounts, deals, and offers – you can find it all on your mobile phone in the form of mobile coupons. You can simply show these coupons to the retailer (or wholesaler depending on who offers the discounts) and redeem the offer.

So, what actually happens is

1. A local business, an electronics showroom for example, adds a mobile coupon to Google Local Business Center listing.

2. You go to google.com on your mobile phone and search for some good deals on DVD players.

3. The Place Page shows that a showroom nearby offers a 10% discount on Blu-ray players and gives three Blu-ray discs for free.

4. You get a message which says that you should show the coupon on your phone at the participating business to redeem the offer.

5. You go to the showroom, show the mobile coupon, and buy the DVD player at a discount and get all the free stuff.

6. You walk away with a big smile on your face.

Sounds simple enough, doesn’t it? What this means to you, and millions of other mobile users, is that you do not have to go through newspapers, magazines, and billboards looking for the best deals this holiday season. You can get all the information you want on the go right on your mobile phone. It is a lot more convenient and saves a lot of time as well. So, get ready to shop till you drop.

Categories: Google, All things mobile phones.

0 comments.

A Detailed Look at Google’s Acquisition of AdMob

So, Google has acquired AdMob. Is it a big deal? Yes, it is. Will it have a big impact on mobile advertising industry? Yes, it will. Is it surprising? No, it is not. Let me tell you why.

Regular readers of this blog know a thing or two about AdMob. It is one of the few mobile advertising companies that I’ve written a lot about on this blog. Anyone who has seen the growth chart of AdMob will hardly find it surprising that a giant like Google has acquired the company. After all, the company has served billions of mobile ads and its clientele include big names like Yahoo.

AdMob specializes in web display ads and application display ads. When mobile users surf the net or play a mobile video game, they will be served targeted ads. Google, as you know, specializes in search ads. When mobile users search for something on the internet, the results page they get will contain targeted ads. Now, combine these two technologies and you have a killer mobile marketing strategy.

Google has spent an astronomical $750 million on this acquisition. Some people think it has spent a lot of money to acquire what many perceive a small business. I do not think so. Google, as we all know, has been trying to make its presence felt in mobile advertising market for quite some time now. While it is certainly seen as a force to be reckoned with, its success on the mobile market is nowhere near its success on the internet. So, acquiring a company like AdMob can help Google establish itself on the mobile phone advertising market.

Moreover, this acquisition will give Google a chance to understand the dynamics of the mobile advertising market. It now has access to a huge amount of data which includes the usage data of various mobile applications. It now knows what kind of mobile apps are preferred by mobile users and what kind of ads have the best conversion rate. With this knowledge, Google can fine tune its advertising strategies and get even better results. So, in my opinion, this acquisition can only be good for Google in the long run.

If you think about it, what Google has done is not surprising at all. You are a new entrant to the market. You see that a number of players are already going strong. You can grab a big share of the market by either competing with them or by buying them out. When you have enough money to buy half of your competition, the latter sounds like a much better option, don’t you think? Something tells me that we’ll see more such acquisitions in the recent future.

Categories: Cell Phone Advertising, Google.

0 comments.

Google AdWords on Mobile Phones

In an effort to reach out to mobile users, Google has come up with what in my opinion is a good idea. From now on, Google AdWords will be available on Apple iPhone and T Mobile G1 and other mobile phones with full HTML browsers.

From now on, if you buy AdWords, you can choose to have the same ads show up on mobile phones too. Thanks to this move, mobile advertisers will now be able to run specific mobile ad campaigns and get separate performance reports on them too. Google gives a few other options for advertisers as well. You can pick and choose the devices in which you want your ads to show up. Since this mobile version of AdWords supports only phones with full HTML browsers, you can have the same set of ads and landing pages show up on websites and mobile phones without modifying them in any way for mobile phones.

I think it is a good move by Google simply because it enables mobile advertisers come up with specific call-to-action ads which could have a very high CTR (click through rate). With Google starting to make inroads toward the mobile ad market, it will be interesting to see what Yahoo and Microsoft do to make their presence felt in the market. What do you guys think?

Categories: Cell Phone Advertising, Google, All things mobile phones.

2 comments.