Huge news in mobile today: Google just announced an acquisition of AdMob, the ad network which was the first to serve in-app ads on the iPhone. This deal makes a lot of sense, and is going to impact long standing changes to mobile advertising. It also affirms Googleâ€™s position in mobile as a dominant force. Here are four reasons why:
King of the hill: Google was getting into in-app ads, but there was already a powerhouse in that space â€“ AdMob. Rather than competing for market share, this acquisition will position Google as the leading provider of in-app ads. Considering the Labâ€™s position that â€œthe mobile app is the new webpage,â€ the overall share of impressions will continue to trend toward applications (though AdMob also has a considerable presence in the WAP world as well).
Analytics: One of AdMobâ€™s strengths is that with its proliferation into many applications, they have great data. Google also loves data, and this install base will presumably allow for rollouts of products like â€œGoogle Analytics for Apps.â€
Single Dashboard: One of Googleâ€™s big promises is the single dashboard for buying digital media. While they have rolled out some mobile presence in that dashboard, once AdMobâ€™s network is rolled into the fold as a checkbox, itâ€™s going to make things quite a bit easier at most of the agencies.
Location Relevance: Google does location very well. AdMobâ€™s one â€œweaknessâ€ is a lack of hyper-location targeting. Googleâ€™s problem with hyper-location targeting has been one of scale â€“ only a handful of apps were being powered by its in-app solution. With several billion ad requests a month, AdMob will add the scale to allow Google to roll out a location targeting mobile ad solution. Itâ€™s highly likely that this will be one of the first major things to come of this acquisition.
All in all, this is a very exciting move by Google. Just last week I was commenting to a Google sales rep that itâ€™s been interesting to watch Google in mobile, as their slow transition into the space left room for upstart companies to dominate the market (AdMob). Kudos to that rep for keeping a straight face. Some exciting changes are on the horizon for mobile.
UPDATE: A report on TechCrunch indicates another interesting GoogleÂ Acquisition. Â The article suggests they’ve picked up VoIP company Gizmo5, which is likely going to support some new offerings with Google Voice. Â Currently, Gizmo5 is the only company offering a free dial-in number for VoIP calls. Â This functionality could allow Google to use Google Voice for VoIP (currently it requires a normal phone line to be used). Â Both of theseÂ acquisitionsÂ set the stage for some powerful innovation in mobile over at Google.