Investors should take a look at the mobile advertising market for possible quick ROI. The most obvious companies that could be acquired in the wake of Google Inc. (NASDAQ:GOOG) buying mobile ad leader AdMob Inc. for $750 million in stock are Millennial Media or Quattro Wireless.
But there are a few others specialty ad networks worth mentioning, such as
- Jumptap,
- InMobi,
- MobClix or
- Mojiva.
Why are these companies on the possible acquisition list?
As noted in
this article focused on Google's navigation service -- which is
now available on devices running Android 1.6 (Donut) and higher -- E Marketer Inc. estimates the U.S. mobile advertising market at $416 million this year, climbing to $16 billion by 2013. While the numbers may be overblown, the mobile ad market will be booming. Smartphone companies will facilitate the march since consumers are demanding faster, more data-intensive phones. That will allow the hosting of more apps and ads that sell against them.
That makes it a good time to have a company like AdMob under your wing. However, Telecoms.com notes that Google isn't the pioneer. Microsoft Corp. (NASDAQ:MSFT), AOL and Yahoo! Inc. (NASDAQ:YHOO) bought mobile advertising networks two years ago: Screen Tonic, Third Screen Media and Actionality, respectively. The story also highlights that Google doesn't have an offering with regards to SMS advertisements and suggests some acquisition targets:
- 4INFO,
- Cellfire,
- HipCricket,
- iLoop Mobile and
- VeriSign Messaging
Even though they were early to the space, Microsoft and Yahoo! could be in line for more mobile ad company acquisitions. One analyst wrote that they
couldn't afford not to acquire either Millennial or Quattro -- two companies that may ask for more money post-AdMob/Google. IDC says the AdMob deal lifted Google past Microsoft and Yahoo! with a U.S. market share,
based on mobile ad revenue, of about 24%.
Last week, Millennial said it closed a $16 million Series C round of funding led by New Enterprise Associates. It also gained some clout in its executive ranks, hiring Michael Avon as EVP and CFO to lead its financial, legal and corporate development activities. Avon joined from Columbia Capital, an early investor in Millennial.
As mentioned previously, wireless phone companies are facilitating the mobile ad march. GPSWorld.com notes the word on the street is that Apple Inc. (NASDAQ:APPL) will release a new global iPhone next year that can access networks on all global wireless networks, including Verizon Communications Inc. (NYSE:VZ). That would seriously boost iPhone sales, leading to more people using apps, which leads to more ads.
Everyone's in on it. Computer company Dell Inc. (NASDAQ:DELL) is now making a smartphone as well. They're selling in China but it could be
coming to the U.S. It's also Android-based, which is good news for Google and AdMob.
Research In Motion Ltd. (NASDAQ:RIMM) recently unveiled a new services platform for developers, enabling them to location-aware applications for BlackBerry smartphones. RIM says the pool of advertisers developers will be able to choose from include trusted top tier and specialty advertising networks such as Jumptap, Lat49, Millennial Media, Navteq, 1020 Placecast and Quattro Wireless.
Ads based on GPS location are a bit "Big Brother," but it may soon be completely unavoidable. In September, Navteq
acquired Acuity Mobile to expand its location-based advertising platform.
And the companies RIM mentioned -- Lat49 and 1020 Placecast -- both focus on location-aware ads. In April, Millennial and WaveMarket
partnered to deliver location-based advertising services.
There's a lot going on, and the mobile ad market is wide open for new ideas and tech. What makes for a good quality in a potential acquisition target? The key is using relevant ads that don't annoy people. And as phones get more powerful, display ad technology will be a nice commodity to have. AdMob has it. -
Baz HiralalAlso see:
Google, Apple plan mobile ad attack
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Adele Gulfo
And the winners are...
How long until Google acquires public company NeoMedia Technologies (NEOM.OB) and dominates the mobile barcode space?
NeoMedia currently has 30 active patents spanning 13 countries, with 29 additional patents pending. These patents cover various linkage methods including: Barcodes, RFID, Mag Stripe, Voice, and other machine readable and keyed entry identifiers.
Microsoft is making great headway with their Microsoft Tag technology. What does Google & their mobile barcode scanning application ShopSavvy plan to do to stay competitive?
NeoMedia just partnered with NeuStar who will act as NeoMedia's licensing agent in the US for the next 4 years.
Also, NeoMedia's long time rival and competitor Scanbuy just signed a 10 year royalty based licensing agreement with NeoMedia, which further strengthens NeoMedia's IP.
How long until Google or Microsoft buys NeoMedia and their valuable patent portfolio and dominates the mobile barcode market?
The OMA & GSMA are defining the standards. CTIA is about to award the code registry & clearinghouse to NeuStar. The ecosystem is nearly complete & about to come online.
What will Google do ???