This Web Giant Has Make it move – Just earlier today ( 9th Nov 2009 ), both Google and Admob has signed a definitive agreement for that Google will acquire Admob for $750 million in stock ( http://www.google.com/press/admob ) ! With mobile market getting much intense, and DoubleClick Mobile under it’s belt, Google ’s move on to explore further into mobile market.
If we would recall, Google had indeed make its intention clear that it is looking for businesses to buy, perhaps even big ones ! Indeed, Admob.com is frequently look upon as the fore-funner in mobile ads market (If it is still fresh in your mind, back in September when CEO Eric Schmidt said the company had begun seriously looking at acquisitions again ).
While earlier this month, rumors are running that Apple may possibly look at acquiring Admob, it didn’t turn out to be fact. As there was no clear strategic reason for Apple to move into intense ads market ( at least what we see for now ). So far, Apple strategy has been in higher profit sectors, especially with it’s ‘selling like Super Hotcake‘ iPhone, and of course, the iPhone Apps store.
Although some might point out that not all sectors that Apple moved into are able to enjoy high profit margin, but not forgetting that these lower margin are more as add-on to those much successful ( and of course, higher margin ) products like iPhone, iPod, and Mac sales.
Nevertheless, if we were to take a deeper look on Admob’s corporate earning, it has actually been able to ride on booming mobile market, and since the iPhone Phenomena, Admob has been recording impressive growth in mobile ads serving thru iPhone apps. From ~130 million of mobile ads served during September 2008, it booms and received whooping 2.6 billion ad requests from iPhone and iPod touch devices in September this year ! As the business cycle move on, this could actually helps on iPhones sales ( the more developers turning into developing those nice iPhones Apps, it just keeps advertise for itself isn’t it ?! )
Some might argue that with Google acquiring Admob, Apple has actually missed out a gem. With Google already nominating the Web Ads market, now having both DoubleClick Mobile and Admob, it is possibly a very strategic business move as it is riding into Apple’s iPhone success. While taking it face-to-face with Google’s Phone, which with it’s own Andriod OS, Google is now being able to further consolidate it’s power and look set to dominate the Mobile Ads market too ! Although Google Phone is still much a ’small kid’ compare to current Apple’s iPhone, but we’ll never know just how big and how far it can goes isn’t it ?!
With much to says, what about mobile ads publishers and other smaller mobile ads networks ? Well, the belief is that mobile publishers will be cheering all the way to the bank, again ! as Google Adsense has been gold pot to them all these years. Surely, with Google coming into bigger play in mobile ads markets, publishers are set to make even more.
But does this also turn out to be a good news to other smaller mobile ads network ? As analyzed by Google itself ( http://www.google.com/press/admob/comp.html , source by eMarketer), there are several players in Apps/Web sector, Admob being the Leader, with Jumptap, Mojiva, Quattro Wireless trailing behind. One of the noticeable network is Mojiva.com ( a rather younger company compare to Admob ), but has been reportedly performing good , and been able to secure few rounds of venture funding.
With Google coming into bigger play, it does looks like tougher challenge ahead, for the smaller mobile ads network. Or just probably, they could twist their strategy to tack on with Google/Admob, and offer some alternative solutions to publishers, and advertisers.
Well… as we speak, the world is riding out current economy downturn, and who will know what’s next isn’t it ?! One thing just for sure – Companies need to continuously strive for the better, not only for survival !
