5 ms·

So obviously I don't understand this market at all, can someone explain to me why google couldn't just copy ad-mob's business practices and features?

gustaf 17y ago
Admob has a lock-in on the iPhone ecosystem that's hard to break.
- xsmasher 17y ago
  Bingo. In order to beat admob you have to move their advertisers to your system (may be easy) and try to get app developers to run your ads instead of Admob's ads (hard). It's a bit of a chicken-and-egg scenario (devs will not move until the advertisers are there, etc.) and much easier to just buy them outright.
eli 17y ago
They did. Google's been running mobile ads (first in Japan, then worldwide) since 2006. But AdMob just plain does it better -- nicer interface and significantly higher CPMs for publishers. I'm sure they also wanted the talent. I've met one or two of the AdMob guys and they seem pretty sharp.
- acgourley 17y ago
  Seems like google could have used some of that 750M to operate at a loss, pay out higher CPMs and attract publishers. It also seems like google could have, in theory, copied their interface or even improved on it. Could it be that google's now too big to make those kind of adjustments once it builds the momentum? The talent angle of course makes sense, they are both pulling in top tier employees and removing top tier competition.
  - litewulf 17y ago
    Its possible that operating at a loss would attract ire (because it really would be like the behavior Microsoft is/was so criticized for).
  - authentic 17y ago
    scenario a: operate at a loss for a while, maybe achieve target (but maybe not), draw the ire of regulators for anticompetitive behavior scenario b: spend cash you can easily afford, have an immediate cash flow return, get a solution that is known to work, eliminate competitive threat without pissing off anyone in the process while ingesting talent at the same time it's fairly easy to see why GOOG chose the latter option.
    - acgourley 17y ago
      won't this also draw concern from regulators?
dskhatri 17y ago
The opportunity cost would likely be much more than $750 million. Google isn't a nimble, agile startup. AdMob is already a key player in this market[1] serving display ads in apps as well as sites. [1] Given analysts use AdMob metrics to figure out market shares of various mobile phones
richardw 17y ago
Also, defensive. Consider the other big players - Google would prefer MS or Yahoo don't snap Admob up. Google might be able to replicate the Adbob business but it would take time. Admob + Google's existing strength is a big head start.

gustaf 17y ago

Admob has a lock-in on the iPhone ecosystem that's hard to break.

xsmasher 17y ago
Bingo. In order to beat admob you have to move their advertisers to your system (may be easy) and try to get app developers to run your ads instead of Admob's ads (hard). It's a bit of a chicken-and-egg scenario (devs will not move until the advertisers are there, etc.) and much easier to just buy them outright.

eli 17y ago

They did. Google's been running mobile ads (first in Japan, then worldwide) since 2006. But AdMob just plain does it better -- nicer interface and significantly higher CPMs for publishers. I'm sure they also wanted the talent. I've met one or two of the AdMob guys and they seem pretty sharp.

acgourley 17y ago
Seems like google could have used some of that 750M to operate at a loss, pay out higher CPMs and attract publishers. It also seems like google could have, in theory, copied their interface or even improved on it. Could it be that google's now too big to make those kind of adjustments once it builds the momentum? The talent angle of course makes sense, they are both pulling in top tier employees and removing top tier competition.
- litewulf 17y ago
  Its possible that operating at a loss would attract ire (because it really would be like the behavior Microsoft is/was so criticized for).
- authentic 17y ago
  scenario a: operate at a loss for a while, maybe achieve target (but maybe not), draw the ire of regulators for anticompetitive behavior scenario b: spend cash you can easily afford, have an immediate cash flow return, get a solution that is known to work, eliminate competitive threat without pissing off anyone in the process while ingesting talent at the same time it's fairly easy to see why GOOG chose the latter option.
  - acgourley 17y ago
    won't this also draw concern from regulators?

dskhatri 17y ago

The opportunity cost would likely be much more than $750 million. Google isn't a nimble, agile startup. AdMob is already a key player in this market[1] serving display ads in apps as well as sites. [1] Given analysts use AdMob metrics to figure out market shares of various mobile phones

richardw 17y ago

Also, defensive. Consider the other big players - Google would prefer MS or Yahoo don't snap Admob up. Google might be able to replicate the Adbob business but it would take time. Admob + Google's existing strength is a big head start.