Internet search services provider Google, Inc., US, has reportedly won regulators' clearance to buy AdMob, Inc. On May 21, 2010, the Federal Trade Commission (FTC) unanimously approved Google's $750 million acquisition, stating that it would not hinder competition in the fledgling mobile-ad market. The deal is expected to make Google the largest mobile-advertising company. It is also likely to make it more difficult for rival Apple to get advertisers to pay a premium for smartphone ads.
In its decision approving Google's purchase of AdMob, the FTC cited Apple almost 20 times and said iAd was a key reason it set aside antitrust concerns. The regulator spent almost six months examining Google's purchase of AdMob. It spoke to rivals and developers about whether the transaction would give Google, already the leader in Internet advertising, an unfair edge in the nascent market for ads on mobile devices such as smartphones and tablet computers.
While analysts and advertisers expect Apple to make inroads in the market, they also feel the company will need to set its rates more aggressively. The purchase of AdMob is seen to make Google and its Android software more appealing to advertisers that seek a wide audience. It is also expected to draw developers eager for part of a market expected to rise over eightfold to $1.78 billion in 2014. According to IDC researchers, Android's growth will outpace other operating systems and nudge aside Apple in 2013 by number of shipments.
With Google and AdMob coming together, Apple Chief Executive Officer Steve Jobs will be under pressure to prove he can apply the same formula to advertising that he uses in selling computers.
In April 2010, Apple introduced iAd, a service that places ads inside applications that run on the company's mobile devices, such as the iPad tablet computer and the iPhone. AdMob also places more simplified ads in applications on Apple devices. Apple will now have to demonstrate that its ads are more effective in spreading a marketing message than those placed by AdMob. Apple's success will depend partly on whether it can convince developers to use only its technology.
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