Google Expands Net of Opportunity

The net of opportunities for mobile advertising looks set to grow after Google bought AdMob, one of the leading mobile advert companies.

The deal which is reportedly worth $750million (£449million) will see Google, the world’s most popular search engine, work alongside the innovative team at AdMob to tap into the burgeoning mobile advertising market.

A Market With “Enormous Potential”

Ever since the launch of Apple’s iPhone the world of mobile advertising has grown at an accelerated rate. In May 2009, the Internet Advertising Bureau (IAB) and Price Waterhouse Coopers (PwC) conducted a study that revealed the mobile advertising market was worth £28.6 million in 2008 with expected year-on-year growth of 99.2%. Market research firm, eMarketer predict that US mobile advertising spend could reach $1.5billion by 2013, which should give an indication towards the potential of this market and explain way Google labelled the market as having “enormous potential.”

Much of the popularity of mobile advertising is centred on the app economy which is estimated to be worth $1 billion at present. Companies produce apps that have ads in them and with apps growing in popularity, the scope for mobile ads are growing.

Google are seeking to take advantage of this market with this purchase that will see them combine their search ads with AdMob’s display ads on mobile web pages and applications.

Smartphone Ads Growing in Popularity

The growth of smartphones, pioneered by Apple’s iPhone, has given rise to this uber cool new mode of providing live ads. The immediate nature of the ads has particular appeal to many advertisers. In October, Google claimed that mobile searches had grown by 30% in the third quarter of 2009 but it is ads that run inside smartphone apps that are the buzz feature of the moment.

Omar Hamoui, chief executive of AdMob said: “The truth is that the mobile industry has had no shortage of creative energy, amazing products, and talented entrepreneurs. But until now, it has always felt like those of us involved in this space played second fiddle to our online brethren. I believe that time is over.

“We launched the first iPhone ad units focused on the web and quickly added 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.”

When you consider that two of the main targets for this market are Facebook – which has now surpassed the 325 million users total – and Apple’s App Store which has more than 50 million iPhone and iPod touch users, there is tremendous scope for this market.