November 23, 2009
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How AdMob Brings Google Important Competitive Intelligence

An Alternative View of the Mobile-Advertising Acquisition

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Ian Schafer
Ian Schafer
In case you missed it, Google acquired mobile ad network AdMob for $750 million in stock.

There's a lot of speculation on why, but the obvious reason is that Google wants more direct access to what they are betting heavily on -- that mobile is the next great advertising medium. It's made a huge bet on mobile with Android, which is an obvious move to own the mobile search ad market, but now it's got its hooks into the mobile display ad market as well.

But what many might be missing could be the biggest reason Google bought AdMob: the data.

AdMob TapTap visits chartEnlarge

With the acquisition of AdMob, Google now has access to usage data of many of the most popular mobile apps -- especially the apps in the iTunes App Store. For iPhones. If Google is taking on Apple for mobile OS market share, it just scored a huge competitive advantage. Google will know more details than ever about how people are using iPhone apps, how they are engaging with advertising within those apps, and users' loyalty to those apps.

Dashboards like the one pictured here only provide a window into the beginning of the mining that Google is likely about to do on its mobile handset competition. There has already been lively conversation about just how much of our personal data Google has access to. Now, even if you don't own an Android phone, Google will be able to collect data.

Until there is enough mobile display advertising to sell to generate healthy-enough revenues (Shazam, anyone?), it may be the access to the data that generates the biggest return on Google's investment.

ABOUT THE AUTHOR
Ian Schafer is CEO of Deep Focus. Follow his musings at Ianschafer.com or Twitter.
1 Comment
Subscribe to comments on: How AdMob Brings Google Important Competitive Intelligence
  By Rodney33 | FRISCO, TX November 10, 2009 10:52:15 pm:
Good point Ian on the importance of data.

Mobile Data is key this day going forward as smart phones are about to eclipse computers in the US and forever change how customers surf engage with the web and make purchase decisions.

Layering data with location, proximity based information (for customers who opt-in)is a game changer that will deliver true one-to-one marketing for any customer who opts-in.

That's why ever marketer needs a mobile strategy. Few have one. But those that do will be ahead of the pack in 2010. This time next year, every marketer will be charged with establishing, fixing or adjusting their mobile strategy.

Our special report, XL Marketing Trends chose Mobile as the #1 trend to change the marketing landscape now and over the next 10 years. That report includes case studies from around the world and is available free from our website.

Rodney Mason, CMO
www.moosylvania.com
www.twitter.com/rodmoose
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