Google buys Admob … problems for the mobile operators?

Google’s purchase of Admob for $750m seems to be a good thing for both parties and mobile advertising in general. Unless, of course, you are mobile operator.

Why is this a problem for the mobile operators?

The answer is simple … as operator revenues get squeezed, they have started to look at mobile advertising as a significant source of new revenue. In the UK, for example, Orange, O2 (O2 Media) and Vodafone (Vodafone Target) have all put resources into this sector. A case in point is Orange’s acquisition of ad network Blyk, this summer.

Google have not made significant in-roads in mobile advertising, but Admob have. If you are a business or brand, you will have a choice to go to your network operator or Google. Judging by Google’s success with online advertising, it looks like most people will not choose advertise with the operators.

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