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Google is somewhat new to the mobile operating system and mobile device markets, but one market it understands, arguably better than any other entity, is online advertising. So, there is reason to raise an eyebrow when Google throws down $750 million to purchase a company like AdMob that is focused on mobile advertising.

Mobile advertising is a nascent market, but Google is placing a pretty hefty bet on its continued success. AdMob has built a solid reputation among the emerging mobile ad competitors, serving ads to both the iPhone and Android platforms. The purchase keeps Google a step ahead of the competition and provides it with an opportunity to help define the market as it has defined the online search advertising industry.

Google developed the Android mobile operating system as a license-free open source project. Now that Android is gaining a significant stake among mobile phones with devices like the Motorola Droid, Motorola Cliq, Samsung Behold II, and HTC Droid Eris, Google is ready to cash in. The purchase of AdMob provides Google with a revenue stream it can use to capitalize on the popularity of Android.

read full article : Google Bets on Mobile Advertising with AdMob Purchase
pcworld.com

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