Google set to transform mobile phone advertising with AdMob buy out

November 10, 2009, By Sanjeev Ramachandran

Effecting one of the largest acquisitions by Google, the search giant has pocketed AdMob Inc, a technology company that facilitates flow of ads into mobile phone applications. The deal is reportedly worth $750 million in Google stock.

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The new buy out comes as a two pronged strategy from Google, and aims at luring mobile phone users with tools, offered free, that enable access to web pages, books, maps and movies. The strategy is such that advertisers are charged an amount to showcase their products to an ever growing consumer base.

Google’s new deal comes following the realization that the mobile web is still young and growing. With mobile advertising of products, growth can grow manifold, feels the search major.

Google seems to have made it a habit of foraying into ewer markets.  It had, last month, posed a challenge to Apple Inc iTunes music service by launching a music search feature. Besides this, it closely followed the new music search launch with the announcement of new Google-powered phones. It had announced that free Global Positioning System navigation software with the new version of its Android mobile operating system would be incorporated into its phones.

The latest acquisition will have all in it to transform the way people look at mobile phone advertising. It is a known fact that Google’s advertising business generates a lion’s share of the $22-billion annual revenues.

(Via LATimes)

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