The Federal Trade Commission has approved Google’s proposed $750 million acquisition of mobile ad network AdMob, stating the deal is unlikely to harm competition. What does this mean for the mobile advertising landscape?
The deal has several implications for the mobile advertising ecosystem. Among them:
Apple has competition – No doubt Apple CEO Steve Jobs and his top team will be locked in meetings this week to figure out their next strategy to thwart Google's progress in mobile. The approval is good news for advertisers and ad agencies. Apple needs a strong competitor in mobile – now more than ever.
- Validation – This deal is further validation that mobile marketing is real, that the results are measurable and have considerable value and that mobile should be a factor, if not a central pillar, in any brand marketing strategy going forward.
- More brands to enter mobile – With the newfound validation of the mobile industry, expect an influx of major brands to the mobile bandwagon.
- Mobile CRM – With more mobile marketing activity in the near future, expect brands and agencies to finally understand that the channel can be used as part of a CRM strategy. Expect more list building and coupon campaigns.
- Multichannel is here – With the explosion of mobile activity, siloed campaigns are a thing of the past. Already, consumers’ dependence on mobile has changed them forever. They want to be spoken to via the channels in which they spend the most time. These channels – mobile, social media and online – are going to be thrown in to the marketing mix, finally and with respectable budgets.
- Growth of Android – Along with a mobile advertising advantage, Google gets a significant amount of clickstream data and transaction records in and around iPhone applications from the acquisition. Expect Google to use all of this to grow Android.
- More choice for brands and marketers – This acquisition, as well as the Quattro/Apple deal, are giving advertisers and publishers more choice in the fast-growing area of mobile advertising. The deal will bring new innovation and competition to mobile advertising and will lead to more effective tools for creating, serving and analyzing emerging mobile ad formats.
- Relevancy – With all the data that Google is getting, ad relevancy will become its specialty. Users will see more relevant ads and ultimately get access to more free or low-cost ad-supported content and applications, improving their mobile experience.
- Mobile advertising will grow - Gartner projects that the worldwide revenue for mobile advertising will be $13.5 billion in 2013, up from around $500 million in 2008. Up until now, Google has focused mainly on search advertising, but this deal signals that it has its sights set on display advertising on mobile.
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