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AdMob acquisition – Why did Google make this move?

Leader in search engine business, single company which is holding 84.5% search engine market share, is all set for its 56th acquisition. Well this time it acquires AdMob for $750milllion., its a usual thing for Google to acquire leading innovations in any related industry. Unlike previous acquisition, this one is little different. Google is keen to dominate Mobile Advertising Network.

Mobile Advertising - fields and players

Why AdMob?

AdMob is a mobile display advertising company founded in 2006 by Omar Hamoui. It display advertisements in web pages and in mobile applications. By June 2009, AdMob served ads on more than 16 million unique iPhone and iPod touch devices. They also served 100 Billion Ads by August 2009.  It was estimated that 2 billion apps were downloaded by September 28, 2009 from Apple apps store. They are now available to more than 50 million customers in 77 countries. Increasing number of apps downloads making this mobile advertising industry as a promising one in future.

Types of Mobile Advertising

So, What’s Google plan?

Google leading search engine industry, because of these technical reasons.,

  • always keeps an eye on future
  • keep updating its algorithm
  • the next big reason is acquisition, it never lets anybody to grow. Once it feels that they can be their rival in future, it uses the weapon called “Acquisition”.

You can’t blame Google for this, its all natural business tactics by many businessman like Mittal. Indeed it ask others to join with them to get more success in that field by using their marketing strategy & new innovative ideas.

Once you are ready to pay or buy any business means, you should be very careful, Google was very clever in this. Google acquires technology which going to rule the Mobile Advertising in future. Google already earning annual revenue of $22 billion through advertising and Google continues to add more and more free services and apps to draw a larger audience which is valuable for its advertising.

Will Google earn profit in this?

Unlike other industry, Mobile Advertising is rapidly growing and a promising field for revenue in future. Google knows that people started using their iPhone as like their laptop/PC. As usual, they will rule in mobile search engine industry but it likes to rule the mobile advertising too.

Mobile Adbertising Spendings

Good businessmen should keep searching for new ideas but there is another way to rule the industry, just acquire the leading innovation’s. Google is very clever in this. Success stories are there with Acquisition of YouTube, but they are going to pay only half the price it paid for YouTube to AdMob. But AdMob will give more profit to Google than YouTube in future.

Google has its own passion to run any business, they exactly know what has to be done with AdMob to make more dollars. Its was estimated that by 2013, spending on mobile advertising will increase to $1.56 billions. So this means, more than half of this will be added to Google’s market share by 2013.

Disclaimer: The post is completely based on individual thoughts and SEO Services Group bears no responsibilities for the thoughts reflected in the post.

Filed Under Google, Search engine
One comment on “AdMob acquisition – Why did Google make this move?
  1. SEO Services says:

    Two reasons stand out –

    First, AdMob is a very strong company in a sector (mobile advertising) that everyone expects to become much more important in the future. Second, this is a chance to make a big move towards monetizing on Apple’s iPhone platform while making sure that no one else does something similar to Android in the future.

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