Google announced yesterday that they were seeking to acquire the most popular mobile advertising network, AdMob for $750 million. AdMob is not only the major leading mobile ad network for the iPhone, but also all other major smart-phones. The AdMob service is the most common ad network for app-supported apps in the App Store and other third party apps.

The deal will help Google in its efforts to develop more effective tools for creating, serving and analyzing emerging mobile ads formats. As this ecosystem continues to grow, the company expects these new marketing media to offer significant benefits:

- Advertisers will be better able to engage mobile users with AdMob’s ad formats
- Publishers and developers will be able to monetize their content more effectively, which has benefits for the wider mobile ecosystem
- Users will see more relevant ads and ultimately get access to more ad-supported content and applications – improving their mobile experience

In a recent blog post, Google executives Susan Wojcicki and Vic Gundotra note the attractive market presented by iPhone and Android users for mobile advertising:

We’ve written in the past about how mobile phones are becoming an increasingly indispensable part of our daily lives, and we continue to see how great devices with full Internet browsers and vibrant app marketplaces are driving an explosion of usage. In fact:

- iPhone and Android users browse the Internet more often than anyone else [Morgan Stanley], contributing to Google’s 5x mobile search growth over the past two years

- And a quarter of these same iPhone and Android users spend nearly 90 minutes per day using applications on their devices [AdMob]

Google has also posted an information site with full details of the proposed AdMob acquisition.