Going Mobile: How iAd and AdMob Move Apple vs. Google to a New Playing Field Knowledge@Wharton
What spending in the mobile advertising industry lacks in heft, it more than makes up for in buzz. Witness Google's recent purchase of AdMob, which brings together the two largest mobile ad networks, and Apple's recent efforts to gain a stronger foothold in the market.
On May 21, the Federal Trade Commission signed off on Google's $750 million acquisition of AdMob, a move that originally created antitrust fears because the two are the biggest players in the market of bringing ads to consumers' smartphones. Fears of dwindling competition were quashed in part due to Apple's own attempts to become a stronger player in the sector. Following an unsuccessful bid to buy AdMob, Apple in January purchased Quattro Wireless, the third largest mobile ad network, for $275 million. Last month, Apple introduced iAd, a service that places ads inside applications running on the company's mobile devices, including the iPhone and iPad.
In a statement permitting the Google/AdMob deal to move forward, FTC officials said they had "reason to believe that Apple quickly will become a strong mobile advertising network competitor," and that any competition lost because Google and AdMob are no longer jockeying to place ads on the former's Android platform will be made up for by rivalry between Android-enabled devices and the iPhone, where Apple will be using its iAd network exclusively.