Like many in the industry, we believe [that blocking the deal] would be a serious mistake. There are much better places for the agency to focus its attention.The mobile space is clearly in its infancy and is changing rapidly. At every touchpoint with the FTC, we felt like the market had shifted enough that what we’d said previously was already out of date. Recent game changing events like Apple’s iAd platform - not to mention Alcatel-Lucent’s new ad system that bypasses apps entirely - make it hard to understand why anyone would feel that a Google/AdMob partnership will reduce competition. From our perspective, this acquisition is a positive, reaffirming event for the entire mobile industry.[...]We tried to emphasize our view that mobile advertising is an industry in flux - and as such, we strongly believe regulation now would be premature.
I agree: FTC considering blocking Google acquisition of AdMob is madness. Key competition is in mobile, not advertising
The internet and mobile technology sectors right now are perhaps the most (or among the most) competitive and fast-moving industries EVER TO EXIST. The web and mobile spaces have remarkably low barriers to entry. [...] And we think Google’s AdMob acquisition will have little if any effect on the competitiveness of the mobile advertising market space.
The crucial point here is 1) the marginal advertiser and the marginal developer, not the average or typical advertiser and developer, are who drive the competition, and there will always be a fight for them, especially because of the “long-tail” where lots of niche opportunities exist, and 2) the cost of switching ad networks in a mobile app is close to zero, and the cost of developing an ad network is not terribly high and easily bankrolled.
I didn’t believe competition would be affected adversely and that advertising prices were not likely to go up. Indeed, mobile CPM prices have been falling in mobile. In short I said, yes Google becomes more powerful and effective but the deal doesn’t stifle competition. The market is dynamic and highly competitive, I told the FTC.
I’m no laissez-faire capitalist but I think the mobile ad market is both very young and highly dynamic. It’s evolving quickly and definitely very competitive. If the objective of anti-trust law is to protect competition in the market then it is simply unnecessary for the FTC to intervene at this stage by blocking the AdMob deal.
Two of these people said the FTC staff didn't appear to be taking into account other companies like Millennial Media Inc., Greystripe Inc. and Jumptap Inc., all of which operate in-application advertising networks. By a broader definition, the mobile advertising market also includes corporate behemoths such as Yahoo Inc. (YHOO) and Microsoft Corp. (MSFT), which serve ads displayed on mobile websites.[...]Industry insiders and analysts said an FTC antitrust challenge would be problematic for a number of reasons. One industry source argued that it was a "flawed theory" to distinguish between ads that appear within mobile-phone applications and those displayed on mobile websites. This person said the mobile-advertising market is at such an early stage that it is impossible to predict which companies will emerge on top.Michael Chang, chief executive at Greystripe, acknowledged that the combination of Google and AdMob would create a stronger rival, but he agreed that the market is too new and too dynamic to predict how it will evolve."It definitely creates a stronger competitor, but we're in the second inning and it's going to be a long game," said Chang.