Google Expands its Mobile Advertising Reach with AdMob Acquisition

This week, Google announced it’s takeover of AdMob, a leading mobile display ad technology provider, for $750 million in stock. Thats’s big money for a company that was a start-up in 2006! The acquisition will expand Google’s mobile advertising reach which is currently focused on mobile search ads. It will allow the search giant to expand its reach into the mobile banner and in-application ad space. The image below from ripped from Google’s press release site, shows the breakdown of Google’s mobile advertising offerings and how AdMob will fit in:

Mobile Ads

As we see in the graphic above, the only pillar of mobile advertising that is missing for Google is SMS based text ads – an area they are bound to enter by leveraging some type of Local Search meets Google Maps mashup that would allow companies to push their service ads to local searchers.

It’ll be interesting to see how long it takes Google to integrate AdMob inventory into their relevancy based content targeting system for ads as well as with their DoubleClick acquisition which allows publishers to buy adspace from publishers on an auction based system.

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