Mobile advertising network leader AdMob made a bold defensive move in its August 2009 acquisition of AdWhirl, which lately had been threatening AdMob’s growing momentum in the mobile applications space. Although founded less than a year ago, AdWhirl moved assertively into AdMob’s rearview mirror, especially in networked advertising for mobile applications on the Apple iPhone and iPod Touch. AdMob lately had felt threatened by the widespread acceptance among mobile publishers of AdWhirl’s proprietary technology, which enables publishers to switch from AdMob to other competitive mobile ad networks. AdMob will likely take that technology and turn it loose to open source developers who can perfect the underlying code, which enables percentage-based allocation of advertising inventory on AdMob’s network.
Despite its AdWhirl acquisition, Mind Commerce is cautiously optimistic about AdMob’s long-term success. AdMob is at a critical juncture in its short life due to the increasing maturity of the mobile marketing and advertising space that is resulting in big payoffs for brand managers, particularly those selling to a local consumer market. While AdMob has the internal resources, including people, products, and technology, to remain competitive in the near-term, what differentiates AdMob from other networks, Mind Commerce believes, is its unique marketing analytics and dashboarding capabilities that provide advertisers with real-time access to campaign metrics. But we believe AdMob could do more in the mobile marketplace to promote this capability that empowers advertisers with cost-cutting, game-changing mobile Web analytics. AdMob’s greatest prospect for long-term growth lies in its so-far proven ability to partner with mobile industry leaders on all fronts, including device manufacturers, advertising agencies, and software developers. Mind Commerce would like to see AdMob foster additional partnerships on the same par as its recent alignment with Apple to bolster its offerings for mobile application developers, a market that currently chalks up nearly $4 billion in sales and we expect to reach more than $10 billion by 2014.
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By: Darren Bosik, Darren@MindCommerce.com