AdMob’s Omar Hamoui leaves Google
Omar Hamoui, founder and chief executive of Google-acquired mobile ad startup AdMob, is leaving the company citing personal reasons.
According to the company, Hamoui built a fantastic business in a short period of time, and the company wishes him all the best. Mobile advertising across search and display is now a billion dollar business for Google, with AdMob a key part of that. Google is fortunate to have a great team of leaders who are driving the next phase of rapid growth and innovation across all the company’s mobile ads products.
Hamoui founded AdMob in early 2006 while a student at the University of Pennsylvania’s prestigious Wharton School at the time, he was struggling to kickstart fotochatter, a mobile social networking startup enabling users to share photos with friends. Calculating that the time and money spent marketing fotochatter translated to customer acquisition costs of $30 per user, Hamoui turned instead to the emerging mobile web, paying sites a penny per click to promote the solution. The lessons learned formed the basis of the AdMob model.
Hamoui spent only about five months working at Google the Federal Trade Commission did not approve the AdMob acquisition until May. After a lengthy probe the FTC determined the deal did not pose a threat to competition in the mobile ad market, adding its initial antitrust concerns were overshadowed by subsequent developments in the mobile ad segment, most notably the introduction of Apple’s iAd effort.
As per the reports by a research firm IDC, Google now represents 21% of the U.S. mobile advertising running neck and neck with iAd.
Apple’s iPad sale crosses one million marks
www.WirelessFederation.com/news: Within 28 days of its launch, Apple’s iPad has overtaken the record breaking sale if iPhone by crossing 1 million mark. The milestone was achieved just as the first 3G-capable version went on sale. The 3G iPad was sold out in many Apple stores.
The device is available only in the US. International sales and will go for sales in the other countries only after May.
Meanwhile a discussion is undergoing between Federal Trade Commission and US Department of Justice over a possible antitrust probe into Apple’s new policy for software developers requiring them to use only Apple’s programming tools in making iPhone apps.
Google rivals asked for declarations by FTC (USA)
www.WirelessFederation.com/news: A sworn declaration has been seeked by US regulators from Google Inc. competitors and advertisers. The declaration is the part of the regulators probe of the Internet Company’s bid to buy AdMob Inc., indicating the government may challenge the deal.
Google’s proposed purchase of AdMob is under the Federal Trade Commission investigation to find out whether the deal would reduce competition in the market for Internet advertising on mobile phones.
AdMob sells ads that appear on Web pages and applications on mobile phones and the agency is assessing whether the purchase would let Google parlay its dominance in Internet searches on computers to phones.
Declarations are collected by Agency officials when they think there is some significant chance. The court will be asked by the agency to block a merger, or seek to modify a deal.
Google on the other hand has decided to continue the talk with the FTC and provide information. The deal between Google and AdMob will give rise to the largest mobile- advertising company in the USA reigning over 21% of the market in 2009.
According to Thomas Ensign, counsel in the antitrust, competition and trade practice of Freshfields Bruckhaus Deringer LLP in Washington, it is difficult to envision a scenario where this development, if true, is positive for Google-AdMob but it doesn’t necessarily mean the agency is going to challenge the deal.
Agency’s staff might be persuaded by the negotiation between Google and the FTC that the deal won’t harm competition but at the end of the investigation it’s up to the agency’s commissioners to decide whether to challenge the deal in court.
Quattro Wireless ad group bought by Apple
www.WirelessFederation.com/news: In a $275 million deal, mobile advertising delivery company Quattro Wireless has been acquired by Apple. According to the VP Andy Miller, offerings and services from Quattro Wireless will not change as of now and the company will continue to operate the Quattro Wireless network across all devices and platforms.
The deal came after Google’s acquisition of AdMob which has a virtual stranglehold on the traditional online advertising market, in November for $750m in stock. However, the deal is now under scrutiny by the Federal Trade Commission for possible antitrust violations.
Quattro will be used by Apple as a selling point to attract developers who make applications for the iPhone and iPod touch. Apple can better enable their app providers with Quattro to generate revenue through advertising.
FTC says net neutrality regulation not needed (US)
The US Federal Trade Commission has warned against implementing any kind of net neutrality regulations as the consequences for the market are too difficult to predict. The FTC’s Internet Access Task Force issued on broadband competition policy, summarizing its findings on the net neutrality debate and offering advise to legislators considering possible regulation of the sector. The recommended “caution” for policymakers given the “evolving, dynamic” nature of the broadband internet industry. The sector is “generally moving toward more not less competition”. With no signs of market failure or consumer harm, the case for imposing regulation appears weak. Furthermore it suggested that broadband providers pursuing data prioritization, exclusive deals and vertical integration into online content and applications could benefit consumers, rather than leading to a digital divide as feared by supports of net neutrality regulations. The primary reason for caution on new legislation is “simply that we do not know what the net effects of potential conduct by broadband providers will be on all consumers.
