Google has signed a definitive agreement to acquire mobile display ad technology provider AdMob for $750m in stock, in a move to enhance its existing expertise and technology in mobile advertising.
Susan Wojcicki, vice president of product management at Google, said: Mobile advertising has enormous potential as a marketing medium and while this industry is still in the early stages of development, AdMob has already made exceptional progress in a very short time. AdMob is the quintessential Silicon Valley startup – generating impressive year on year revenue growth – and we’re excited to welcome this talented team to Google.
Google said that the deal will help in its efforts to develop more effective tools for creating, serving and analysing emerging mobile ads formats.
According to Google, the new marketing media is expected to offer significant benefits such as, the advertisers will be better able to engage mobile users with AdMob’s ad formats; publishers and developers will be able to monetise their content more effectively, which has benefits for the wider mobile ecosystem.
In addition, it allows users to see more relevant ads and ultimately get access to more ad-supported content and applications.
Omar Hamoui, founder and CEO of AdMob, said: Our goal all along at AdMob has been to make it possible for developers and publishers to bring their products and ideas to mobile with the same business model.
“We’re proud of the progress we’ve made towards accomplishing this goal, and joining Google will only accelerate this process, ultimately leading to very real benefits for end users around the world. As publishers and developers generate more revenue from their mobile products, they will invest more, and their mobile offerings will become richer, more creative and more robust.