November 10th, 2009, 12:10AM in Business by Marc LequimeView Comments
Google, a company who recently are experimenting with a few more peculiar takes on the tech industry – notably, their aims to move away from virtual web programs and developing operating systems for mobiles, and the announcement of Google Chrome OS – an operating system to take on Apple and Microsoft’s aims. Now, Google have acquired a Mobile Advertising company – that is, a company that sends advertisements in various forms to mobile phones. While Google have decided to drop SMS advertising (otherwise known as text spam), they’ve continued the Application adverts and the Website adverts, as well as implementing all their search ads into the software.
Could Google be trying to jump into the deep end?
Google recently have shook the tech market with releases that were unexpected and shattering – like a free satellite navigation system that lowered some big Satnav companies’ stocks nearly 5% – incurring big money losses. Of course, we can hardly point the blame at Google – much like every other company they’re just trying to earn money – but the issue is that they’re beginning to grow into a Monopoly, which is, of course, worrying the tech world. If Google becomes a monopoly and ventures into every business, the internet will no longer be inspired by creativity and flair, but rather fueled by the $22billion that Google has lying around.
Susan Wojcicki, the important Vice President of Product Management at Google, stated that “Mobile advertising has enormous potential as a marketing medium and while this industry is still in the early stages of development, AdMob has already made exceptional progress in a very short time. AdMob is the quintessential Silicon Valley startup — generating impressive year on year revenue growth — and we’re excited to welcome this talented team to Google.”
Google have set up a press website for explaining their acquisition and what it means. Google states "Mobile advertising is a rapidly growing and competitive space, and Google and AdMob are currently specializing in different areas. Though Google offers many forms of mobile advertising, its focus to date has been on mobile search ads, while AdMob’s focus has been mobile display ads and in-application ads… …The deal will give mobile publishers and app developers more choices for monetizing their content, by making ad-supported mobile apps a more viable option (alongside pay-per-download and in-app transactions). By combining the advertising technologies of AdMob and Google, the deal is likely to yield better ad performance on mobile applications and websites."
A diagram, below, explains exactly this:
What do you think? Is Google truly a monopoly, and will their product acquisitions really be beneficial for the greater good? Or will it just mean that all the startups haven’t a hope in hell of getting noticed anymore.
I am a 15-year-old student from England. I have no idea how I have the time to write things like this.
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