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Google buys mobile ad company AdMob for $750 million

by Scott Bicheno on 9 November 2009, 18:38

Tags: Google (NASDAQ:GOOG)

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Do no competing

Internet search giant Google doesn't seem to want to leave anything to chance as the growth of the mobile Internet gathers pace, announcing today that it's adding mobile display advertising outfit AdMob - which calls itself the world's largest mobile advertising marketplace - to its offering, at a cost of $750 million.

Google is already behind the fastest growing operating system for smartphones - Android - and is working to make itself as big a supplier of free services on the mobile phone as it already is on the PC. But Google's primary source of revenue remains search advertising, and it will want to make sure it is at least as dominant on handsets as it is on PCs.

While Google can reasonably expect a lot of mobile Internet users to search for stuff on its browser, smartphone users are increasingly conducting their online affairs via app stores and the, often free, apps they download from them. How do you make money from offering a mobile phone app for free? Advertising, of course.

This is where AdMob comes in, as Google illustrated on a site created to explain the reasons behind the acquisition. Google will focus on its traditional search advertising, while AdMob will allow Google to be a major player in both mobile web and app display ads.

 

 

So, that's another bit of competition neatly dealt with. Well done Google.

 



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