Google buys Admob & Gizmo5 – Is 2009 the year mobile really does come of age

by Peter Young on November 9, 2009 · 0 comments

Today the news broke that Google had acquired Admob, a company specialising in serving display ads on mobile devices including the iPhone. In return Admob will receive a cool $750 million in stock. Whilst Google do have some mobile traction, the deal with Admob provides them with significant muscle in an increasingly booming mobile market.

According to the BBC, Google said mobile advertising had “enormous potential” and praised AdMob’s “exceptional progress”.

“AdMob is the quintessential Silicon Valley start-up, generating impressive year-on-year revenue growth, and we’re excited to welcome this talented team to Google,” said Susan Wojcicki, Google’s vice-president of product management.

It would also seem that Google have purchased VOIP startup Gizmo5 (according to reports from TechCrunch) further expanding Googles telecoms credentials and could further aid their Google Voice product and in the long term could provide Google with a serious rival to Skype.

However it is the Admob acquisition which is getting the majority of column inches. It is no secret that Google have been trying to develop the display credentials, particularly looking at their behavioural display platform and with the acquisition of Admob they should be able to expand their available inventory within this sector quite significantly.

What it also means is that the mobile market really does have a significant player backing the mobile market (excluding search) outside of the traditional hardware and operator players such as Apple, Orange and Blackberry – and the first to make a real statement of intent of mobile within their future plans.

Its certainly an interesting purchase, and one Google will have to be careful to nuture. There is no doubt though, it shows Googles’ serious interest in the mobile market, and provides a clear warning to rivals that they are not just happy at dominating the online market. TIme will tell whether this goes a similar way to previous attempts from Yahoo and Microsoft or whether this is the start of a ‘golden age of mobile’ as the mobile market sees hastened development and innovation.

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