“Just taking our web stuff and slapping it on wasn’t going to be a sufficient strategy,” she said.Ĭhinese app maker Cheetah Mobile Inc turned to AdMob last year, shifting focus from Facebook Inc’s Audience Network. Google needed technology fresher than AdSense to deliver in-app ads, according to Sissie Hsiao, who leads the company’s apps business. Google bought AdMob for $750 million in 2010, beating a bid from Apple Inc. It is not clear which is growing faster because Google does not provide that data.ĪdMob, which was designed specifically for mobile, tends to attract ads promoting apps and smartphone services. The biggest choice for many app creators is between Google’s AdMob and DoubleClick. Google’s iPhone market share is only slightly behind.
Over 1.1 million Android apps include Google’s ad software, double from a year ago, making it by far the fastest-growing and most widely used ad service, according to research firm MightySignal. Purchases of in-app ads nearly tripled last year compared to 2016 on Google’s DoubleClick Bid Manager, used by advertisers with the biggest budgets. The high payouts, coupled with Google’s entrenched relationship with millions of advertisers, has turned Google into the main revenue source for many apps.
Google gives developers about 70 cents of every $1 it collects from ad buyers, compared to 50 cents to 60 cents at some competitors. Still, Google’s strategy is winning customers. Alex Hewson, managing partner at M&C Saatchi Mobile, said the London-based ad buying agency has used AdMob for years, but only recently has it become the “top supplier.” And it is increasingly satisfying advertisers with hot new formats such as video.Īdvertisers are taking notice. Google has lured app developers from competitors by lowering commissions and simplifying software. But as consumers migrate from desktop computing to mobile, momentum has shifted to AdMob, Google’s mass-market tool for third-party apps, and DoubleClick for Publishers, its higher-end mobile software. The business is nearing $20 billion in annual revenue, making it as important to Google’s top-line as its hardware, cloud computing and app store groups combined.įor years, the star of the network was Google’s AdSense, which delivers ads to websites in exchange for a cut of ad revenue. Google’s ad network unit has posted three straight quarters of year-over-year double-digit sales increases. That is the core of a resurgent business for parent Alphabet Inc. SAN FRANCISCO, Feb 15 (Reuters) - Google makes ads show up in more smartphone apps than any other technology company. (Repeats for additional clients with no changes to text)
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