United States: Google Acquires Mobile Display Ad Firm AdMob.

Byline: sanjayV03

Google on Monday announced that it has acquired mobile display advertising firm AdMob for an undisclosed amount.

"Despite the tremendous growth in mobile usage and the substantial investment by many businesses in the space, the mobile web is still in its early stages," Susan Wojcicki, vice president of product management, and Vic Gundotra, vice president of Engineering at Google, wrote in a blog post. "We believe that great mobile advertising products can encourage even more growth in the mobile ecosystem. That's what has us excited about this deal."

Wojcicki and Gundotra said the deal will produce better products and tools and more effective monetization for publishers of mobile Web sites and applications. It will also bring better, more relevant ads on a grander scale for advertisers focused on the mobile space, they said.

Consumers, meanwhile, will benefit from more "mobile ads that deliver useful information," they concluded. California-based AdMob was founded in 2006 by Omar Hamoui.

"We are not going away," Hamoui wrote in a note on his Web site. "After our deal with Google closes, we will work together to accelerate the pace of innovation in this area."

AdMob's product and engineering, business development, and sales teams will remain intact, Hamoui said. "It's just that now we will be able to do an even better job for all of our customers," he said.

Hamoui founded two unsuccessful mobile startups prior to AdMob, due in part to his inability "to distribute or monetize the product without a carrier or handset deal." Apple and the iPhone, however, moved everything forward, he said.

"Apple solved so many problems that had plagued mobile for so long," Hamoui said. "Our business and the mobile industry in general owe Apple a debt of gratitude."

After the iPhone was released, AdMob shifted much of its focus to the device, and the company launched the first iPhone ad units focused on the web, as well as the capability to run ads in applications.

"Now with the addition of excellent devices from Palm, Nokia, RIM, and plethora of Android powered smartphones, we have all the preconditions necessary for what will be a tidal wave of mobile browsing and app usage," Hamoui wrote.

Not to slight its new owner, Hamoui said AdMob has "been blown away by Google's entrepreneurial attitude, their speed, and their insight," he said. "In all of our interactions we've felt their passion for innovation and new ideas."

During a recent earnings call, Google CEO Eric Schmidt said the company is "open for business in making strategic acquisitions both large and small."

Typically, Google has made about one small, technology-intensive acquisition per month, Schmidt said, and that will likely continue. Bigger investments, like the company's purchase of YouTube or DoubleClick, however, will be "relatively rare" due to the high cost of integration.

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