AdMob Adding More Money for Mobile Ads

By Azam on October 22, 2008

AdMob an industry leading platform provider of mobile adverting announced new investment round $15.7 M of financing. AdMob secured a new $15.7 million Series C investment round, led by Sequoia Capital’s Growth Fund with existing investor Accel Partners participating in the round for further expansion plans. AdMob has been reported to have reached profitability earlier this year. AdMob serves both display advertising and performance-based ads, tripling its number of ads served over the past year to 4.52 billion worldwide in September.

Commenting on AdMob and recent round of investment

“Today AdMob reaches more consumers on their mobile phones through our publisher network than any of the major Internet portals or search services, and this is just the beginning,” said Omar Hamoui, Founder and CEO, AdMob. “We chose to raise this new round of funding to continue to grow both the mobile advertising market and AdMob’s clear advantage in it by investing in the technology, operations and team that have set the bar for the mobile industry.”

“AdMob has surpassed the largest names in digital advertising to become the world’s biggest mobile ad network in just two short years,” said Jim Goetz, Partner, Sequoia Capital. “AdMob has tapped into the exploding market of publishers creating great mobile content for consumers and the advertisers eager to interact with those engaged users. AdMob is well capitalized and has achieved cash flow positive results, giving them a unique opportunity in this difficult economic climate to aggressively capture market share. They have some of the same qualities that we saw in Google, Yahoo!, YouTube and Apple, including their exceptional team and powerful technology platform.”

AdMob also announced its publisher network now includes more than 6,000 partners worldwide, giving it an unmatched scale. New publishers in 2008 include MySpace and MovieTickets.com. AdMob also continues to see a steep increase in the number of brand and performance advertisers running campaigns on its network, with especially strong demand for iPhone inventory. In September 2008, AdMob ran more than 25 campaigns for brand advertisers including CoverGirl, Toshiba, and Comedy Central.

AdMob has benefited fromserving Ads for the iPhone. The company says it has no trouble filling the ad inventory for the iPhone. AdMob will benefit from the rapid sales of the Appple iPhone being reported. The G1 phone based on the Google Android platform would present another opportunity to address. AdMob is likely to see increased competition from larger firms interested in the mobile ad space: google, yahoo, AOL’s Platform A.

Growth Plans

The new round of funding will be used to continue the company international expansion plans and planes to increase sales and business development for international and domestic markets. AdMob plans to increase efforts in the US, UK, India, and Japan. AdMob will continue to invest in its ad technology for ad optimization, targeting and serving algorithm.The investment show promising conviction in the mobile ad space despite the current economic environment and concern on its impact on digital media advertising. The investment from Sequoia is quite interesting due to server portfolio funds cutting back in anticipation of slower growth, and the Sequoia fund designated for growth in later stage firms and fund faster growth is investing in AdMob .

AdMob Adding More Money for Mobile Ads

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