Google Integrates AdWords With AdMobs; Expects To Tap Mobile Ad Market

Google has announced that it will start integrating AdMob with Adwords. That is, advertisers can now buy mobile display ads from within AdWords account.

Google acquired AdMob in 2009 for $750 million and as of now it claims to serve more than 40 billion mobile banner and text ads per month across mobile Web sites and handset applications. Currently, AdMob offers advertising solutions for many mobile platforms, including Android, iOS, webOS, Flash Lite, and Windows Phone 7 and even on standard mobile browsers. Google also claims that AdMob runs on more than 300,000 apps on phones. With the integration, advertisers will be able to reach AdWords’ two million websites accesible from desktop computers.

From Google’s official blog:

To make mobile ad buying seamless and accessible for more than a million AdWords advertisers, today we’re integrating our AdMob technology directly into our AdWords system. This enables advertisers to run effective campaigns across the more than 300,000 mobile applications running ads by AdMob—all from within the AdWords interface. It also helps AdMob developers and publishers increase their revenue by giving them access to a large number of new advertisers. AdWords advertisers can now manage, measure and adjust search, display and video ads, reaching people on more than 2 million websites and hundreds of thousands of apps, across all screens.

Bringing together the best of AdWords with the best of AdMob is an important step in building integrated solutions that help all businesses get the most out of digital marketing. This complements DoubleClick Digital Marketing, our new unified ad platform for larger marketers and agencies who use DoubleClick’s ad technology, which we announced earlier this week.

How will this help

With this announcement, it appears that Google thinks that mobile’s is the future. Well that’s where the money is. Recently, Facebook too made a similar decision and opened up mobile only advertising options for advertisers. In Facebook’s IPO filing too, we observed necessary stress on its mobile strategy. Just yesterday, Twitter CEO Dick Costolo disclosed that Twitter is already generating more revenue from mobile than on the web. Which is a significant feat considering that advertisers have been nutty in advertising on mobile.

Google already generates significant amount of its revenue from advertising. In fact, 96% of Google’s revenue comes from Adversting. If mobile is going to be the next big thing where advertisers would pay attention next, Google wouldn’t want to miss the train.