Just as with online, there are the networks and the mediators/exchanges jockeying for position in mobile. The Smaatos, AdMarvels and Nexages of the world are trying to provide greater fill and ad optimization (and thus revenue) for publishers. But some of the ad networks believe that they're the ones creating the value in the ecosystem and that exchanges and mediators will become unnecessary if they can provide greater fill rates and more revenue accordingly.
Google has had two incomplete mobile networks: AdMob and AdSense for Mobile. Yesterday it announced that it was partially combining them by bringing AdSense ads to the AdMob network (though not the other way at present). The algorithim will optimize ad selection to provide the best ad for the publisher. Mostly it will serve AdMob ads, but sometimes AdSense ads if there isn't a relevant AdMob ad to deliver.
In addition to greater fill rates, the new arrangement also provides greater reach for AdSense advertisers on the Google mobile display network (previously the Google content network). Google says the following about how it will work:
Publishers using a recent version of the SDK will not have to update their code. Reporting will integrate directly into your AdMob account, and you will continue to receive a single check from AdMob each month. Publishers should note that they will not be able to filter the types of AdSense ads (e.g. category, URL) that run in their app. As a result, publishers who have ad filters selected for their AdMob inventory need to opt in to receive Google ads. Publishers can check their “App Settings” tab in the Sites & Apps section of their publisher account to see if they are eligible for Google ads and opt in. Eligible iPhone and Android application publishers not utilizing ad filters will be opted into receiving Google ads as the feature is rolled out in phases over the next several weeks.Google has still more mobile display assets over at DoubleClick and with Teracent, which can serve dynamic ad creative depending on several variables. It will be interesting to see how it all gets integrated.
I believe that eventually Google will have two marketplaces: one for text ads and one for graphical and rich media ads. I also believe that over time Google will more tightly integrate PC and mobile ad buying (which is fairly well integrated today on the search side) -- although that can never be completely accomplished because of the separate demands of the different mediums.
Already the king of search, Google is becoming a more and more formidable competitor in display on both the PC and in mobile.
Posted by Ybo