14 DAY TRIAL // San Mateo, California-based AdMob Inc., a company selling ads that appear on mobile phones, has been recently purchased by Google, who agreed to pay $750 million for the company. However, it seems that Google was not the only one interested in the purchase of AdMob, and that Apple also approached it with the same purpose a few weeks before the Google deal was closed.
According to bloomberg, which cites a source familiar with the negotiations, which were not made public until now, both Apple and Google are very interested in the mobile-phone market, and their interest in AdMob also shows that the competition in the area is intensifying. The deal between AdMob and Google will result in the largest mobile-advertising company, which should account for around 30 to 40 percent of the market.
According to Karsten Weide, an analyst with researcher IDC in San Mateo, also cited by bloomberg, Apple would have had the chance to expand into online advertising if the negotiations with AdMob had ended favorably for it. Another proof that the competition between Google and Apple on the mobile market is accentuating is the resigning of Google Chief Executive Officer Eric Schmidt from Apple’s board in July, a move that Apple CEO Steve Jobs said was necessary.
Both Apple and Google have expanded their market share in the smartphone segment lately. The sales of these devices managed to climb during the last few quarters, despite the fact that the overall mobile phone market shrunk by around 6 percent. What smartphones offer to users includes multimedia features, Internet browsing, video downloads, and playback, as well as social networking connectivity.
According to Google's CEO, the purchase of AdMob should offer it the possibility to sell ads included in applications for iPhone and Android-based handsets. “We think that’s as strategic as search monetization,” Schmidt added. Most of you should already be aware of the fact that Apple announced, not too long ago, that its App Store passed the 100,000 mark, while Google's Android Market only listed around 12,000.