Was Quattro a bargain? Was AdMob a rip-off?

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    Posted: 08 June 2010 04:55 AM

    Apple?s announcement of $60 million booked revenues for iAd, of which 60% is meant for developers implies $24 million operating profit for the second half of 2010.  Assuming this rate doubles $100 million for 2011, it becomes clear that the acquisition of Quattro for $250 million is reasonable (2.5x gross earnings) and that the AdMob price of $750 million seems expensive.

    Now Google may have justification for the $750 million along the lines of income from non-Apple platforms, but the CPMs for Admob are a fraction (perhaps 10%) of what iAd is able to obtain.  Therefore, it?s a pretty fair conclusion that Google did not get a bargain.

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    Posted: 08 June 2010 06:51 AM #1

    At it’s heart and soul, { I know, I’ve paid for a few hundred thousand dollars of them…} ADVERTISING is all about, and ONLY about….

    ...IMPACT.

    Period, end-of-story, TOTALLY.

    There is nothing else that matters, the ONLY thing that anyone remembers, is the EMOTIONAL pull that the ad engenders.

    iAD does that, perfectly, flawlessly, seamlessly, and totally.

    Google gives you a button to leave and get lost somewhere.

    This is gonna be HUGE HUGE HUGE *** HUGE ***, bigger than huge.

    Now you are gonna have all the ME-TOO’s rushing off to copy this, as they are just doing with everything Apple does nowadays, wait till Steve et al, vette’s a concept, let them open up the market, then RUSH OFF to do a Chinese knock-off product, as quickly as they can.

    But personally, having been an advertising BUYER & SELLER, now for 40 years { actually had a web site that sold advertising as well for five years } I see this as big as the App Store itself and slicker, since the monetization potential will suck in the BEST, and most creative APP DEVELOPERS immediately, and keep them there, to feed off the shared revenue stream.

    KUDOS ON iAD!!

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    “Even in the worst of times, someone turns a profit. . ” —#162 Ferengi: Rules of Acquisition