Last year we have featured an article titled “Android and the Mobile Advertising Market”, at that time we have asked Millennial Media and Admob (among others) about Android mobile platform and the mobile advertising market. Until today it was not clear for everyone how Google will monetize this huge project, while all the roads lead to -obviously- the mobile adveritising market; we are still waiting.

At that time also there was no Android based handset, only the emulator was available; but there was the iPhone, and Admob launched last year a very big initiative to reach and engage users on iPhone. Admob offered $1Million to iPhone developers to promote their iPhone apps and web-apps. Today after that G1 device was available, it was time to launch mobile advertising on the Android platform and that’s the announcement you will read below. Until Google consider eating its dogfood, other mobile advertising startups will find the time to take a good part from the advertising market share.

Currently some advertisers – not announced below – are already using Admob to deliver their ads and promote their Android applications in the Admob network. We saw link that open directly in the search result of the Adroid market, with the name of the application as search keyword.

Update 1/28/2009 : An Admob SDK demo is available in the Android Market showing Ads placement in the Lunar Lander sample application.

Below the press release :

AdMob Launches Ad Unit for Android Applications

Innovative Ad Network Delivers Monetization Solution for Android Developers

SAN MATEO, Calif. AdMob, the world’s largest mobile advertising marketplace, today announced that it has launched its first advertising unit for Android applications, enabling developers to monetize their applications on this new device platform. The first developers to leverage AdMob’s new Android ad unit in their applications include AccuWeather, Jirbo, and TapJoy.

AdMob’s new Android ad unit will also allow brand and performance advertisers to reach the rapidly growing base of consumers engaging with applications on their Android devices. Advertisers will be able to use these ad units to drive customer actions such as going to the Android Market to download an application.

“Android’s open platform enables developers to build rich mobile applications that provide a great experience for users,” said Ali Diab, Vice President of Product Management for AdMob. “We are already seeing strong interest in developing applications for Android-based devices, similar to what we saw with the iPhone last summer, and are very excited to take the lead in helping developers monetize their applications on this fast-growing device platform.”

AdMob already serves ads on mobile Web sites on the Android platform and received more than 27 million requests in December 2008. Building on the initial success of the G1 device, Google’s new mobile platform looks to become a major force in the mobile industry with several new devices expected to come to market in 2009.

“We’ve partnered with AdMob to monetize our mobile services for several years now and continue to get great results working with them on our mobile Web site and in our iPhone application,” said David Mitchell, Director, Wireless Services, AccuWeather. “We are excited to extend this successful relationship with AdMob and start monetizing our new Android application.”

More than 6,000 mobile sites and 450 iPhone applications are a part of AdMob’s publisher network worldwide, giving the company unparalleled reach.

About AdMob

AdMob is the world’s largest and highest quality mobile advertising marketplace, serving more than 4.6 billion mobile banner and text ads per month. Incorporated in April 2006, AdMob allows advertisers to reach their customers on the mobile Web and enables publishers to increase the value of their mobile sites. AdMob makes it easy for publishers to monetize their mobile traffic and for advertisers to target and reach customers on the mobile Web in more than 160 countries.

AdMob has been named a 2008 Technology Pioneer by the World Economic Forum, one of Wired.com’s 2008 Companies to Watch, and VentureBeat’s Mobilebeat 2008 Best Overall Mobile Startup / Best Mobile Infrastructure Company. To learn more about AdMob, visit www.admob.com.

Even if the way “how Google will really profit from Android” still a mystery until today, the answer is certainly around advertising. The mobile advertising market is really booming, even if some market predection are confusing, for example according to ABI research Mobile Marketing revenue will hit the $24 Billion in 2013, jumping from just $1.8 Billion in 2007, while consultancy Forrester in the other side predict revenue under $1 billion by 2012. Open Handset Magazine asked the emerging players in the mobile advertising market about Android and mobile marketing. Admob and Millennial Media accepted to answer our questions.

OHM: What do you think about Android Mobile Platform?

Eric Eller, SVP Products and Marketing at Millennial Media

With good reason, there is lots of excitement surrounding any open initiative. It provides increased opportunity for developers to be creative and innovative while taking an active role in the future of consumer applications and services. More mobile applications mean more choices and more compelling content for users, which will lead to higher mobile usage – obviously a positive thing for the industry.

Jason Spero, VP Marketing at Admob :

The launch of the iPhone and the announcement of the Android project are about users. The potential of the mobile ecosystem has been well documented (and well marketed). Many blame the Operators for the perceived lack of progress toward this potential, but a variety of forces have constrained the user experience on the mobile device. These include: device form factor, text entry and capabilities, network speeds and capabilities, billing mechanisms, discovery mechanisms, non-commerce monetization mechanisms, fragmentation of application platforms, fragmentation of browser platforms and more. Each of these needs to be addressed for mobile to achieve its promise. Apple and Google recognize the opportunity and have grown frustrated with the pace at which the obstacles are being address.

Android is a market development effort. Google understands the opportunity for its business model once the mobile internet takes off. Google is now working actively to accelerate that takeoff. Android addresses some (but not all) of the ecosystem needs. In theory, the availability of a robust underlying software platform will reduce fragmentation for application developers, decrease cost and time to market for device manufacturers and spark a new wave of competition in device form factors that will deliver better user experience for mobile data. This will drive use of the mobile internet. In theory. What remains to be seen is how manufacturers will leverage and extend Android to their needs and whether this will undermine the core goal of decreasing fragmentation. But we remain hopeful that Android will deliver on its promise.

AdMob has had a front row seat for the acceleration of the mobile internet in 2006 and 2007. We see dramatic progress against the constraints to mobile web usage.

• Devices are dramatically improved even before the impact of iPhone and Android
• Increases in network speeds have improved the mobile browsing experience
• Simpler data pricing models have made mobile internet more accessible for all
• Content providers have a viable means to monetize their offerings via advertising
• Discovery is being addressed via search, directories and advertising

The launch of the iPhone gave the market a picture of what a mobile data experience could be. This is an example that has catalyzed investment against all of the requirements for mobile data. The iPhone and Android have accelerated something that was already happening.

AdMob is pro mobile internet for all the same reasons that Google is pro mobile internet. AdMob is device agnostic and can benefit from any and all improvements in the mobile web experience. The launch of Android devices in 2008 and beyond will drive increased usage of the mobile internet. Google has said that it will keep separate its market development efforts via Android from its search and AdSense businesses. AdMob believes this ensures fair competition. So AdMob, awaits the arrival of Android devices in the same way we anticipate innovation from Nokia, Motorola, Samsung and others. Improvements in user experience will drive usage, which is all we can ask.

OHM: How could Google Android change the mobile advertising market?

Eric E.: “Google is obviously a major player in online advertising and anything they do in the mobile space will have an impact. What remains to be seen is the nature of that impact. On the one hand, by enabling developers to quickly create new innovative mobile applications, Android could help increase the availability of mobile content that is available for free using the ad-supported model. On the other hand, if developers are compelled to preferentially utilize Google advertising services versus other opportunities in the market, the perception of openness will disappear.”

Jason S.: “The mobile ad market is already growing rapidly.

If Android delivers an improved user experience this will drive usage of the mobile internet. This will further accelerate the growing interest in reaching users on their mobile devices and will motivate more and more content providers to invest in mobile. User experience improvements will drive both supply of and demand for mobile advertising.”