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BizReport : Mobile Marketing : May 24, 2010

Experts react to Google/AdMob deal

Late last week, the Federal Trade Commission (FTC) closed its investigation of the pending deal between Google and AdMob. The deal would have Google acquire the mobile ad network; the FTC's decision basically states that Google owning the network won't harm mobile competition.

by Kristina Knight

The decision was likely helped along by Apple's announcement that it is planning to launch a mobile ad network; several other companies have begun grumbling about their own smartphone/mobile platforms.

"AdMob's success to date on the iPhone platform is unlikely to be an accurate predictor of AdMob's competitive significance going forward," was written in the FTC report. The authors went on to not that Google's ownership of the mobile ad network would likely not make a difference in how it performs in the future.

Do industry experts agree?

"The FTC's approval of Google's acquisition of AdMob represents a huge milestone for mobile advertising and marketing. This is additional validation that the mobile device has officially joined the ranks of other proven marketing channels such as the Web, broadcast and print," said Eric Harber, President and COO of Hipcricket. "However, as the industry spotlight shines on mobile display advertising, it's critical that marketers remember that SMS remains the most effective means for reaching the great majority of mobile subscribers, 286 million of which reside in the U.S. In the end the most effective strategies will be those that tap into the strengths of both in order to most effectively capture the attention of consumers, connect them with their favorite brands and reach their ultimate objectives, securing sales and their long-term loyalty."

"I think the FTC made the right decision here," said Justin Siegel, Mocospace CEO. "It's a good outcome for Google, AdMob and the mobile advertising industry.

"I'm excited by this deal, and relieved that the mobile advertising and marketing industry is receiving this boost. Given the powerful location and time components of mobile - particularly for retailers - we believe that the mobile market could garner at least $2 billion in ad spend within the next two years. To achieve that, consumers and the industry need companies like Google attracting dollars and making it easier for advertisers to buy," said Alistair Goodman, CEO of Placecast.

Tags: admob, google, hipcricket, mobile marketing, mocospace, placecast

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