Google to Gobble AdMob; Expect Big Things from Mobile Ahead

(Image via Google)

Google announced Monday its plans to acquire mobile display advertising company AdMob for a cool $750 million in company stock. The search giant asserts that “great mobile advertising products can encourage even more growth in the mobile ecosystem” and that together Google and AdMob will work on the future of mobile advertising.

The future looks bright. Mobile phones have rapidly become a main communication channel thanks to enhancements to mobile Internet browsers and the staggering app market boom. Another sign demonstrative of mobile’s emergence is the growth of AdMob itself – in just three years the company has surged to the top of the mobile ad market, serving more than 10 billion monthly impressions across 15,000 sites worldwide.

Here’s what Google says the acquisition will do for the mobile market’s three prime stakeholders:

• For consumers – Expect more mobile content and better, more relevant, mobile ads.
• For publishers (of mobile sites and apps) – The deal will allow for sophisticated products and tools that will lead to more effective monetization solutions.
• For advertisers – Google says marketers will be better equipped to engage consumers in the mobile space by delivering “more relevant ads and greater reach.”

This deal will help propel the mobile industry by encouraging mobile ad spend, which currently pales in comparison to other digital mediums, such as display. Yet given the discrepancies in spend, mobile usage continues to rise to dramatic levels, and advertising must keep pace.

Though the integration between Google and AdMob will not be finalized for a couple of months, the prospective implications of the deal loom large for marketers in the digital space. One thing we know for sure: Google’s status as an industry leader makes the acquisition an effectual vote of confidence for the future of mobile.