The FTC is reportedly gearing up to challenge the Google-AdMob deal, due to anti-trust regulations The search giant acquired the popular mobile advertising network for $750 million last Fall. Reports emerged today from Reuters’ sources that the FTC’s lawyers will recommend that the Commission block the deal. We’re not surprised, considering that we heard that Google was taking the unprecedented step of reaching out to AdMob competitors to rally their support around their acquisition of the company, in response to rumors that the FTC could block the deal. Consumer groups have also lobbied to block the deal.
According to a Wall Street Journal report yesterday, the FTC started assembling a legal team to prepare to block the deal. And the FTC is soliciting statements from the same competitors that Google is lobbying, in an effort to get these companies to testify on the regulatory ramifications of the AdMob acquisition.
Of course, Google claims that AdMob is only one of the many ad networks are competing in the arena and the mobile advertising market is still so young that it’s still unclear who the leader is in the space right now. And of course, Google is quick to point to Apple’s recent acquisition of mobile ad network Quattro Wireless.
It appeared that Google had high ambitions for AdMob, which was one of Google’s largest acquisitions since it bought DoubleClick for $3.1 billion in 2008. The rise of mobile advertising attracted Google to this space and with the acquisition of AdMob, the search giant could gain a valuable revenue channel. AdMob, which some say is approaching a $100 million business within the next three years, could be an extremely profitable source, especially when the platform is plugged into AdWords and DoubleClick.
Google provides search and advertising services, which together aim to organize and monetize the world’s information. In addition to its dominant search engine, it offers a plethora of online tools and platforms including: Gmail, Maps, YouTube, and Google+, the company’s extension into the social space. Most of its Web-based products are free, funded by Google’s highly integrated online advertising platforms AdWords and AdSense. Google promotes the idea that advertising should be highly targeted and relevant to users thus providing...
AdMob is a mobile advertising marketplace that connects advertisers with mobile publishers. They allow advertisers to create and target ads with plenty of detail. Ads can be targeted to locations, carriers, phone platforms and phone manufacturers. Ads can also be targeted to specific sites or you can browse their channel categories including categories like communities, contextual search, entertainment, etc. All ads are run on an auction-based pricing system. AdMob clients include ESPN, CBS, Geico and Starbucks. AdMob was acquired...
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