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.
Some of the data that shows why the proposed AdMob deal should be blocked can be seen at www.Appitalism.com/blog Together you'll have both sides of the caseThanks for allowing comments
If Google got this deal, it will block all the other competition. For sure Google will not stop other companies to have similar services, but NO ONE will be able to do it like Google and their odds will be much fewer than Google. That's why the FTC is blocking the deal
Google should definitely be allowed the acquisition. Apple is launching its own ad platform and proposed fees are far higher than existing ones by other network owners.Doesn't this discriminatory pricing by Apple suggest that they feel that they have monopolistic control over the market than the other network operators ?Or it could merely be the characteristic of a nascent market where the players are still trying to determine optimum pricing.
I have no idea why the FTC is reviewing this at all.A trust would not exist and cannot whether Google purchases AdMob or not. Google would need to buy every company like AdMob and then somehow, by magic I suppose, stop anyone else from entering the market while raising prices. This is an economic impossibility.
if the FTC blocks this it will only make it even harder for small startup companies to compete with the large corporations. Which is why the FTC is even investigating this in the first place. No small startup can afford to work with multiple companies to advertise across web, mobile and tv. Google is working to continue to provide the best cross platform advertised service too small and startup businesses as they always have at a price that levels the playing field.
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