On November 9, 2009 Google announced an agreement to acquire AdMob, a mobile display ad technology provider, for $750 million. What is AdMob? AdMob is a mobile display advertising company based in San Mateo, CA. AdMob is a great Silicon Valley story — founded in 2006 by Omar Hamoui.

Why Google decide to acquire AdMob? As they said in official blog, how mobile phones are becoming an increasingly indispensable part of our daily lives, and Google continue to see how great devices with full Internet browsers and vibrant app marketplaces are driving an explosion of usage. Google has considered about these facts :

• iPhone and Android users browse the Internet more often than anyone else [Morgan Stanley], contributing to Google’s 5x mobile search growth over the past two years
• And a quarter of these same iPhone and Android users spend nearly 90 minutes per day using applications on their devices [AdMob]

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.