AdMob has been a major player in the mobile advertising world, really taking off when Apple enabled apps on their iPhone and iPod Touch devices. Google is gobbling up their competition mobile ad competition by acquiring AdMob.
"Mobile advertising has enormous potential as a marketing medium and while this industry is still in the early stages of development, AdMob has already made exceptional progress in a very short time," said Susan Wojcicki, Vice President of Product Management at Google. "AdMob is the quintessential Silicon Valley startup -- generating impressive year on year revenue growth -- and we're excited to welcome this talented team to Google."
As a result of the acquisition, Google expects the following:
- Better engagement for advertisers in their interactions with mobile users
- More effective monetization for publishers and developers
- More relevant ads and access to more content (supported by ads) for users
Google bought AdMob for $750 million. AdMob founder Omar Hamoui founded the company in 2006. This is quite a payoff for him, both monetarily and with regards to innovation in the industry.
"I think people underestimate how important ads have been to funding the development of innovative content on the Internet. Our goal all along at AdMob has been to make it possible for developers and publishers to bring their products and ideas to mobile with the same business model," said Hamoui. "We're proud of the progress we've made towards accomplishing this goal, and joining Google will only accelerate this process, ultimately leading to very real benefits for end users around the world. As publishers and developers generate more revenue from their mobile products, they will invest more, and their mobile offerings will become richer, more creative and more robust."
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