Google want to make sure that no matter where their customers go, advertisers will be there too. It announced that it would be buying AdMob Inc for $750 million in Google stock.
Google acknowledges that the mobile web is “still in its early stages” and that great mobile advertising products will only encourage more growth in that segment. Google is heavily dependent on its advertising business, which brings in $22 billion annually.
Google has been the defacto search engine, receiving nearly two-thirds of US web searches. Despite that, Google continues to expand into other industries, most recently enabling users to find books.
Questions have been raised as to whether Google in catalyzing competition, or gasp, monopolizing the market and thus stifling competition. Challenging Apple’s dominant iTunes music service, Google unveiled a music search feature enabling users to find and buy music online. This is one area where Google does not, and experts believe that Google will not be able to dent, let alone dominate.
But Google dominates nearly everywhere else, displacing competitors by offering software for free. Regulators ultimately could take action if free Google services like its GPS application, its search engine or maybe even YouTube, end up being so completely dominant that newcomers are unable to compete.
Google isn’t worried, basically stating that consumers like free stuff, and that Google will continue to offer free software and figure out a business model that would allow advertising to cover the costs. And along the line, they figure on making billions in the process.
