FTC Still Examining GoogleMob—Wants Feedback from Rivals
Now here’s a great way to gather totally, completely unbiased information about a potential merger: ask the companies’ competitors. Okay, so the FTC isn’t completely crazy—of course other companies in the market would have a pretty good idea what the industry looks like and what a big merger might do. But still, we can only hope the FTC will remember to take their opinions with a grain of competitive salt.
AdMob, the popular mobile advertising company, and Google, the wanna-be-popular mobile advertising company, announced the deal in November. Google gave AdMob $750M in stock in the deal. The next month, consumer groups began lobbying against the deal. Now the FTC wants both advertisers and rivals to make sworn statements about the pending merger.
The probe isn’t public, but sources say the commission is “investigating whether Google’s proposed purchase of AdMob would reduce competition in the market for Internet advertising on mobile phones.” (Kind of a duh.) Google says it’s continuing to talk with the FTC and cooperate with requests for information.
Bloomberg consulted Thomas Ensign, an antitrust lawyer, on the matter. He said, “It’s difficult to envision a scenario where this development, if true, is positive for Google-AdMob, but it doesn’t necessarily mean the agency is going to challenge the deal.”
Just over a year ago, the US Department of Justice was hours from filing anti-trust charges against the search giant over another major advertising deal (with Yahoo). Is Google pushing their luck with this merger? Will GoogleMob hurt the mobile ad industry? Will the FTC stop the deal?
US Regulators May Be Gearing Up For Google-AdMob Challenge
Beyond the iPhone one could convincingly argue that the best thing to happen to mobile advertising in the past year was Google’s announced acquisition of AdMob. It got everyone’s attention — especially the $750 million (stock) price tag.
It also single-handedly boosted the profile of all of AdMob’s competitors. As an almost direct response Apple, which [...]
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Google Awarded Location Based Ad Patent
W
hen you read headlines like this it sometimes feels like the rich just keep getting richer. That is until you learn that it was a trek that started six years ago and it’s serendipitous timing is a bonus. One would think that Google is rubbing their hands together and giving their best “Boo ha ha ha ha!” mad scientist laughs in Mountain View because it seems like there is just a little interest these days in targeting ads by location and the money that it could represent.
While the blogosphere was buzzing over the patent Facebook won for its news feed last week, Google earned a killer one too. The U.S. Patent and Trademark Office awarded the search giant a patent for using location in an advertising system last Tuesday, which is the emerging business model for most consumer-facing location startups today.
Filed six years ago, the patent is fairly broad. It covers using location for targeting, setting a minimum price bid for an ad, offering performance analytics, and modifying the content of an ad.
This is the kind of news that on the surface looks like it could bring up more of that dirty anti-trust-monopoly talk but it’s far too early to see just how this patent will play out in the market. How Google wields this power is certainly something that remains to be seen but the folks at Digital Beat take a look at what might be brewing.
However, the location-based ad patent may give Google a nice big stick as it goes head-to-head with Apple in the world of mobile advertising. Both companies have acquired or agreed to acquire a mobile ad network in the last three months; Google agreed to buy Admob for $750 million in November, while Apple bought Quattro Wireless in January. Google actually bucked a patent Apple owns last month, when it added multi-touch functionality to its Android operating system. Perhaps this is the card the search giant had up its sleeve.
So as with anything else these days it seems like the battle lines are being drawn in every area of the online space. “Google v. Apple” and “Google v. the Rest of the World and Its Regulatory Bodies” is going to be a common theme for the foreseeable future. I suspect that Google is armed and ready but so is everyone else. It’s starting to feel like the WWE in the Internet space. Maybe there will be a pay-per-view event with Eric Schmidt and Steve Jobs in a steel cage death match. I’d pay for that.
If you are into these kinds of things here is the abstract for the patent
The usefulness, and consequently the performance, of advertisements are improved by allowing businesses to better target their ads to a responsive audience. Location information is determined (or simply accepted) and used. For example, location information may be used in a relevancy determination of an ad. As another example, location information may be used in an attribute (e.g., position) arbitration. Such location information may be associated with price information, such as a maximum price bid. Such location information may be associated with ad performance information. Ad performance information may be tracked on the basis of location information. The content of an ad creative, and/or of a landing page may be selected and/or modified using location information. Finally, tools, such as user interfaces, may be provided to allow a business to enter and/or modify location information, such as location information used for targeting and location-dependent price information. The location information used to target and/or score ads may be, include, or define an area. The area may be defined by at least one geographic reference point (e.g., defined by latitude and longitude coordinates) and perhaps additional information. Thus, the area may be a circle defined by a geographic reference point and a radius, an ellipse defined by two geographic reference points and a distance sum, or a polygon defined by three or more geographic reference points, for example.
So here we go. Patents and lawsuits and egos…..oh my.
Has Google Just Patented Geo-Targeting?
Google has been awarded a patent entitled “Determining and/or using location information in an ad system” that has very broad implications for PC and mobile advertising. While we all take geo-targeting today for granted, back when this Google patent application was filed in April, 2004 it wasn’t as common. Dare I say it: Google may [...]
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2010: The Year Of Small Business Resurgence & (Finally!) Mobile Advertising
No one needs a new survey, study or pundit to tell them how important mobile devices have become to consumers. Just look down the street where everyone from teens to corner-office suits appears sidetracked by communication on the go—texting, talking, thumbs jumping across tiny keyboards in a hurried attempt to reply-all.
This is the audience of [...]
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How To Optimize A Mobile AdWords Campaign
Google is going mobile in a big way. Following the announcement of Nexus One, the official Google phone, and the acquisition of adMob, Google is ready to make some serious moves on the small screen.
Early days of mobile advertising
Before smart phones hit the market, mobile advertisers were confined to the small screens of traditional mobile [...]
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With Mobile Ad Networks Being Snapped Up By Google And Apple Will Yahoo Or Microsoft Be The Next To Buy?
In November, Google surprised many when it announced that it was buying mobile ad network AdMob for a massive $750 million in stock, bringing mobile advertising suddenly into the consciousness of people who’d simply not paid attention before: “Hey, maybe this thing IS for real.”
Now Apple is reportedly buying another tier one mobile ad network, [...]
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FTC To Take A Closer Look At Google-AdMob Transaction
The 30-day window for the FTC’s review of Google’s $750 million acquisition of AdMob is now up and the regulatory agency has decided it’s going to take a closer look at the impact of the deal (”second request”) on the nascent but rapidly evolving mobile advertising sector. This means that the FTC will be gathering [...]
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Ahhhhh To Be Young and Mobile
It appears that it is finally safe to say that if mobile hasn’t completely arrived it is certainly in the room and recognized for its potential. Should we declare 2010 as the ‘Year of Mobile’? Sure, why not. There will be others and honestly it means nothing to hype it. Let’s look at what’s actually going on at street level.
Over at the ZDNet’s Between the Lines blog, Larry Dignan tells us about a survey from the Bernstein Research’s Jeffrey Lindsay did some research among 360 smartphone users that follows up some initial research he did in the mobile advertising space. Here is some of the information that you may find interesting
- 67 percent of respondents said that smartphones increased their Internet usage for personal use and 45 percent said work related usage rose.
- 95 percent of users use the same search engine for the PC and mobile.
- 37 percent of respondents say they are clicking on more paid search links and seeing more display adds. Users 18 to 34 found mobile ads to be more relevant than their PC counterparts. Older users panned mobile ads across the board.
As Dignan points out, I agree the major piece of data to be gleaned from this is the fact the younger the mobile user is the more likely they will be responsive to mobile ads. The older users referred to breaks out in this chart below.
I’m not surprised by this and I hope the rest of the industry will take heed. When it comes to mobile there may not be an audience unless your product or service skews young. This is likely to change over time but for now it’s the younger set that will allow mobile and advertising to be used as a phrase while others think that the separation of the two is the better way to go.
GoogMob Deal “A Watershed Moment” For Mobile Advertising
Just as the introduction of the iPhone changed everything in the consumer world of mobile and helped usher in the era of the mobile internet, the pending Google acquisition of mobile display ad network AdMob is an almost equally significant event for mobile advertising. Over the past few years mobile advertising and marketing have been [...]
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