Apple's forthcoming iAd may wind up being the tipping point that will prompt the Federal Trade Commission to approve Google's pending acquisition of AdMob. When it first began to review the $750 million acquisition, staff at the Federal Trade Commission were expecting to recommend blocking Google's acquisition of the mobile advertising network, according to a source quoted in the New York Post.
Now, though, the commissioners appear to have decided there are valid arguments for both approving or denying the transaction. A final decision is expected within ten days. While the decision is still hanging in the balance, the source said, Apple's iAd is working in Google's favor.
That would be a turnaround - the proposed deal appeared to have rubbed both the FTC and consumer advocates the wrong way ever since it was announced. In December the FTC told Google it was stepping up its inquiry into the deal. Two consumer organizations - the Consumer Watchdog and Center for a Digital Democracy - have urged the FTC to block the deal entirely.
Indeed, while the Post's sources appears to think the deal will go forward, other sources interviewed by BusinessWeek say the FTC is prepared to litigate the acquisition.
The irony is that the mobile ad market is so dynamic right now it will likely be almost unrecognizable in a few years - with or without Google's entrance into this space. "The mobile advertising industry is set to grow significantly, with reports suggesting that it will exceed $6.5 billion by 2012, but the majority of this will be simple text-based ads," Philip Sugai, Professor of Marketing and director of the Mobile Consumer Lab at the International University of Japan, tells MarketingVOX.
"But I believe that most estimates are overlooking the powerful new possibilities that AdMob and related services bring. Once advertisers can begin to build relationships between products, people, the location of these people, and the time of day, an entirely new world of advertising and marketing will be born."
AdMob Makes Changes
AdMob, it seems, is moving towards this world, whether or not Google becomes its owner. The company has taken two important steps to broaden its customer base, writes Venture Beat.
It has enabled support for Apple's iAd system by complying with confidential rules and restrictions Apple has provided. Support for iAd ads will be done through AdMob's AdWhirl clearinghouse for ads, which connects the inventories of AdMob, JumpTap, MDotM, Millennial Media, and Quattro Wireless, according to Venture Beat.
AdMob also is giving developers more flexibility as to which networks can connect to their apps. Developers wanted to be able to go beyond AdMob, AdWhirl and in-house ads in pursuit of other ad inventories, according to CTO Kevin Scott.
