USA Today
Now begins the race to push more ads to your cellphone.
Despite antitrust and privacy concerns expressed by consumer groups, the Federal Trade Commission late last week greenlighted Google's $750 million acquisition of mobile ad company AdMob. Recent moves by Apple to stake out turf in the nascent mobile advertising field turned out to be a pivotal factor.
Earlier, Apple made a failed bid to acquire AdMob, then followed up by acquiring mobile ad firm Quattro Wireless for $275 million. And last month, Apple launched a mobile advertising system dubbed iAd.
The agency's blessing clears the way for a clash of tech titans. Google, Apple, Microsoft and Yahoo are expected to slug it out in advertising's hottest segment. Spending on mobile ads should nearly double this year to $433 million, according to IDC.
That's only a smidgen of the $31.5 billion U.S. advertisers will spend for online ads this year. But mobile ads are "strategically important," says IDC analyst Karsten Weide. "Mobile will be important for the mid- to long-term future, but not decisive within the next five years simply because search advertising will attract more absolute dollars."
AdMob gives Google a fast start. The search giant can offer advertisers the ability to run common ads on Google search results pages on PCs and on mobile devices, including Google Android phones, says Greg Sterling, senior analyst at Opus Research.
Apple's recent moves put it in the running. Apple has the iPhone and iPad, but lacks systems for selling and publishing ads. "It very much remains to be seen whether Apple can become an effective advertising company," Sterling says.
Meanwhile, Microsoft is about to blend its Bing search engine with Yahoo's online ad system. Both giants have the capacity to sell mobile ads. And it would not surprise Trip Chowdhry, analyst at Global Equities Research, if they go shopping among dozens of promising start-ups. "I look for Microsoft to make acquisitions," Chowdhry says.
Consumer groups vow to remain vigilant.
"We will press the commission to ensure mobile privacy is protected," says Jeff Chester, director of the Center for Digital Democracy.
Despite antitrust and privacy concerns expressed by consumer groups, the Federal Trade Commission late last week greenlighted Google's $750 million acquisition of mobile ad company AdMob. Recent moves by Apple to stake out turf in the nascent mobile advertising field turned out to be a pivotal factor.
Earlier, Apple made a failed bid to acquire AdMob, then followed up by acquiring mobile ad firm Quattro Wireless for $275 million. And last month, Apple launched a mobile advertising system dubbed iAd.
The agency's blessing clears the way for a clash of tech titans. Google, Apple, Microsoft and Yahoo are expected to slug it out in advertising's hottest segment. Spending on mobile ads should nearly double this year to $433 million, according to IDC.
That's only a smidgen of the $31.5 billion U.S. advertisers will spend for online ads this year. But mobile ads are "strategically important," says IDC analyst Karsten Weide. "Mobile will be important for the mid- to long-term future, but not decisive within the next five years simply because search advertising will attract more absolute dollars."
AdMob gives Google a fast start. The search giant can offer advertisers the ability to run common ads on Google search results pages on PCs and on mobile devices, including Google Android phones, says Greg Sterling, senior analyst at Opus Research.
Apple's recent moves put it in the running. Apple has the iPhone and iPad, but lacks systems for selling and publishing ads. "It very much remains to be seen whether Apple can become an effective advertising company," Sterling says.
Meanwhile, Microsoft is about to blend its Bing search engine with Yahoo's online ad system. Both giants have the capacity to sell mobile ads. And it would not surprise Trip Chowdhry, analyst at Global Equities Research, if they go shopping among dozens of promising start-ups. "I look for Microsoft to make acquisitions," Chowdhry says.
Consumer groups vow to remain vigilant.
"We will press the commission to ensure mobile privacy is protected," says Jeff Chester, director of the Center for Digital Democracy.
