By Nic Stirk, CEO, SLA Mobile

In the the last few months we have seen significant merger and acquisition deals in the Mobile Advertising space.

Last November Google announced an agreement to acquire AdMob for $750m. At the start of this month Apple announced the acquisition of Quattro Wireless for $275m and Opera Software acquired AdMarvel in a deal reportedly worth $23m ($8m cash and $15m earn-out). 2007 was also a busy merger year.  AOL acquired Third Screen Media and Microsoft acquired ScreenTonic both in May 2007, and Yahoo acquired Actionality in August the same year.

Both AdMob and Quattro are well established advertising networks with good market share.  A recent IDC report stated that AdMob had 11% and Quattro Wireless 7% respectively of the US market based upon the number of ad impressions served.  So although significantly different in scale, what do these recent deals signify for the Mobile Advertising industry?

Google’s focus has traditionally been around SMS and search related mobile advertising – the addition of AdMob brings web and application display ads.

Their view is that despite the tremendous growth in mobile usage and the substantial investment by many businesses in the space the mobile web is still in its early stages. Pundits have been saying for some time now that the revenue from mobile inventory is going to be larger than that from the fixed web, and although it’s estimated that AdMob is generating approximately €60m of annualized revenue, it probably has the largest inventory of mobile advertising placement space and the largest network of partners.  It could, therefore, be concluded that Google’s excitement around the AdMob deal is based on the fact that it believes that great mobile advertising products can encourage even more growth in the mobile ecosystem.

Quattro Wireless serves a full spectrum of mobile marketing solutions, including display advertising, SMS/MMS/shortcodes, rich media, video and custom programs in more than 100 countries and across thousands of mobile web sites and applications.  One of Apple’s key strategies is to make Quattro the preferred platform for serving ads into iPhone apps.  This should offer developers a simple way of creating and monetising in-app ads and, by brokering that space to publishers and advertisers, be able to take a share of that revenue as well as the revenue from app purchases.

The AdMarvel deal is more of a technology play.  It appears that nearly 50 million people who access the web use Opera on their mobile phones and, together with AdMarvel, Opera might play an important role in the evolution of mobile advertising. AdMarvel’s product suite includes a number of management and analytics tools for mobile ad publishers. The company website states that they ‘strive to make mobile advertising work better’, by better transparency of results, simpler management of ad traffic and higher revenue return.  A key differentiator from AdMob and Quattro is that they are not an ad network – but they partner with ad networks to deliver better results for publishers.

The last few months have resulted in industry consolidation – but there is still competition in the market with Millennial Media and Jumptap still owning significant percentages of advertising revenues. I am not so sure they can now keep up with the giants of Apple and Google, but let’s see how things unfold.