Google Will Become Invincible In Mobile Ads After Acquiring This Indian Company
Many people will be shocked to hear the news that Google is about to pay $1 billion to acquire an Indian company. What makes this company worth billion dollars? We discuss it here.
The Indian company is InMobi, the name you might not have heard before. InMobi is one of the largest mobile ad network company in the world. In fact, the company was ranked at second (after Pinterest) among pre-IPO ad tech companies.
InMobi was launched in 2007, the year when smartphones started gaining popularity. Hence, the company also got the first-mover advantage. What they do is that they help companies target phones and mobile devices in their advertising. Their platforms provide specific services to different types of apps. For example, they offer unique strategies to game developers who want to monetize their apps.
As far as their size is concerned, the company claims to have over 1 billion users across 200 countries. It has around 900 employees around the globe and has taken $220.6 million in funding. InMobi’s CEO Naveen Tevari told Business Insider that the company serves a staggering 93.4 billion impressions monthly, across the planet. This number makes InMobi even bigger player in mobile advertising than Google’s AdMob network. Since Google bought AdMob for $750, InMobi is clearly worth more than that, and hence the speculations of about $1 billion acquisition fees.
InMobi also has blessings of Japan’s Softbank as an investor along with Kleiner Perkins and others. With the help of these investors, the Bangalore-based startup has managed to grow more than Twitter’s MoPub, Millennial Media, and Apple’s iAd.
If Google completes this acquisition, the search giant will solidify its position in mobile ad networks to an extent that it would become invincible. Google is already the biggest mobile ad company in the world, and this acquisition would make Google No.1 for mobile ad revenues for years to come. Google’s mobile ad network is already twice as big as its competitors, such as Facebook.
As mentioned earlier, other big names such as Apple, Facebook, and Twitter are also fighting to get a share of mobile ads, but Google is dominating the race. The Mountain View company is not only the largest search provider in the world, it also has revenue of billions from mobile ads.
The move by Google also shows the future of mobile in tech domain. Despite being the No. 1 company already in mobile ads, the search giant is willing to invest about $1 billion to further cement its position and knock the competition miles away.