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Google to buy Admob

So – Goole intend to buy Admob? There is a caveat on this news story – they might not be allowed to buy Admob. Allowing Google to buy Admob will effectively create an early monopoly for Google in mobile display ads and this is probably bad news for the industry. The DoubleClick acquisition should acquisition should have been blocked, the Yahoo! deal was going to be blocked and there should be significant concern over this acquisition.
So let’s assume that it does go through.
Publishers of mobile apps don’t have much choice on who to go to to monetise inventory. This deal reduces options even more and runs the risk of monopolistic pricing abuse (to be fair, Google’s acquired adsense platform has helped thousands of sites make cash where once they didn’t albeit potentially to the detriment of web display advertising CPM rates). Monopolistic pricing would cut both ways of course with advertisers being forced to pay more for inventory.
Another big upside for Google is traffic knowledge across a huge number of new apps. Soon it will have more knowledge about app usage on the iPhone platform than Apple do. I may be wrong but Apple’s iPhone (unlike the Palm Pre I believe) doesn’t call home on app usage. If it did the privacy concerns would be huge – imagine the sense of injustice with Apple when Google gets to cull this data and they don’t (hint to Apple – buy an ad platform fast).
There may be some upside for the industry though. Mobile ad display is pretty unintelligent. I am looking at a twitter app, I am standing in London and I get an ad for comedy central where the ad displays some US celebrity I do not recognise and never heard of. A platform has to emerge which provides value to all parties: ultra local adverts that are liked by users, better monetise for content owners and allow more efficient marketing for business.
Where does Local Sale Finder sit on this? We don’t use a mobile ad display partner. I don’t think we ever will. Why? We allow small businesses to post discounts to every with the application installed. Yes, we get paid, and yes, that sound like a 3-way win to me.
</end rant

So – Google intends to buy Admob? (there is a caveat on this news story – they might not be allowed to buy Admob)

Allowing Google to buy Admob will effectively create an early monopoly for Google in mobile display ads and this is probably bad news for the industry. The DoubleClick acquisition  should have been blocked, the Yahoo! deal was going to be blocked and there should be significant concerns over this acquisition.

So let’s assume that it does go through.

Publishers of mobile apps now don’t have much choice on who to go to to monetise inventory. This deal reduces options even more and runs the risk of monopolistic pricing abuse (to be fair, Google’s acquired adsense platform has helped thousands of sites make cash where once they didn’t albeit potentially to the detriment of web display advertising CPM rates). Monopolistic pricing would cut both ways of course with advertisers being forced to pay more for inventory.

Another big upside for Google is traffic knowledge across a huge number of new apps. Soon it will have more knowledge about app usage on the iPhone platform than Apple do. I may be wrong but Apple’s iPhone (unlike the Palm Pre I believe) doesn’t call home on app usage. If it did the privacy concerns would be huge – imagine the sense of injustice with Apple when Google gets to cull this data and they don’t (hint to Apple – buy an ad platform fast).

There may be some upside for the industry though. Mobile ad display is pretty unintelligent. I am looking at a twitter app, I am standing in London and I get an ad for comedy central where the ad displays some US celebrity I do not recognise and never heard of. A platform has to emerge which provides value to all parties: ultra local adverts that are liked by users, better monetise for content owners and allow more efficient marketing for business.

Where does Local Sale Finder sit on this? We don’t use a mobile ad display partner. I don’t think we ever will. Why? We use the BView API which allows small businesses to post discounts and local vouchers in their area to everyone with the application installed. Yes, we get paid, and yes, that sound like a 3-way win to me.

</end rant>

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This entry was posted on Tuesday, November 10th, 2009 at 11:11 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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