Home Mobile The Wait Is Over: Google/AdMob Approved by FTC

The Wait Is Over: Google/AdMob Approved by FTC

SHARE:

FTCIt’s official.   The impossible will not happen and the U.S. Federal Trade Commission has approved Google’s purchase of  mobile ad network powerhouse, AdMob.

And, there will be no $700 million kill fee for AdMob and its investors.  But, it’s fun to think about.

The FTC’s statement (PDF) on the approval reveals the reason for the intensity of the review as the commission saw the acquisition as the merger of the two leaders in the space:

“The decision was a difficult one because the parties currently are the two leading mobile advertising networks, and the Commission was concerned about the loss of head-to-head competition between them.”

What’s interesting here is that the FTC presumably sees the mobile marketplace as that impactful when estimates indicate the mobile market will remain an also-ran to other forms of digital delivery such as search, video or display when it comes to ad spend for the foreseeable future.

According to the IABs estimates from its most recent revenue report (PDF): “Search revenues totaled $2.6 billion in the second quarter of 2009.” In September 2009, eMarketer pointed to ONLY $1.5 billion in annual mobile advertising revenues by 2013. (see below)

Mobile Growth

In a few years, it may make sense to re-think the digital silos and nomenclatures as data-driven advertising overlaps between device types. Digital TV will be delivered on mobile devices. AdMob will serve ads into an app on a PC. It’s all delivered via Internet Protocal (IP). Mobility is a feature of digital marketing. Display, text, video, etc. are the tactics. To the FTC, mobile seems like the fishing industry.

Over at the Official Google blog, the company is officially happy they can move on. Susan Wojcicki, VP of Product Management, wrote:

“We’re very excited about the possibilities in this field. As an immediate matter, we’re now moving to close this acquisition in coming weeks. We’ll then start work right away on bringing AdMob’s and Google’s teams and products together.”

The final clue into the FTC thought process as to why it decided to approve is equally puzzling: Apple purchased Quattro to provide a significant competitor in the FTC’s estimation.

Subscribe

AdExchanger Daily

Get our editors’ roundup delivered to your inbox every weekday.

From the FTC’s statement:

“During the investigation, Apple acquired the third largest mobile ad network, Quattro Wireless, in December 2009 and then introduced its own mobile advertising network, iAd, as part of its iPhone applications package. The Commission has reason to believe that Apple quickly will become a strong mobile advertising network competitor.”

So, if Apple hadn’t bought Quattro Wireless, would this deal be approved by the FTC? Sound like it wouldn’t have and AdMob would have enjoyed its alleged $700 million kill fee. Did Steve Jobs pull the trigger on Quattro too soon? Hindsight is 20-20 unless you’re the FTC.

In addition to the FTC statement, you can also read its press release.

Must Read

play button with many coins isolated on blue background. The concept of monetization of the video. Making money on video content. minimal style. 3d rendering

Exclusive: Connatix And JW Player Merge To Create A One-Stop Shop For Video Monetization

On Wednesday, video monetization platforms Connatix and JW Player announced plans to merge into a new entity called JWP Connatix. The deal was first rumored in July.

HUMAN Raises $50 Million To Build A Deterministic ID For Attribution

HUMAN plans to build a deterministic ID from its tracking of more than 20 trillion digital signals per week across 3 billion devices, which will aid attribution for ecommerce.

Buyers Can Now Target High-Attention Inventory In The Trade Desk

By applying Adelaide’s Attention Unit scoring, buyers can target low-, medium- and high-attention inventory via TTD’s self-serve platform.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

How Should Advertisers Navigate A TikTok Ban Or Google Breakup? Just Ask Brian Wieser

The online advertising industry is staring down the barrel of not one but two potential shutdowns that could radically change where brands put their ad dollars in 2025, according to Madison and Wall’s Brian Weiser and Olivia Morley.

Intent IQ Has Patents For Ad Tech’s Most Basic Functions – And It’s Not Afraid To Use Them

An unusual dilemma has programmatic vendors and ad tech platforms worried about a flurry of potential patent infringement suits.

TikTok Video For Open Web Publishers? Outbrain Built It.

Outbrain is trying to shed its chumbox rep by bringing social media-style vertical video to mobile publishers on the open web.