Mobile advertising both on apps and the mobile web, is a natural extension of Google’s display and search ad business. However, Google's AdMob capabilities did not fit the overall strategy for mobile advertising. Now Google is announcing that it will soon end AdMob’s mobile web serving and instead encourage mobile web publishers to use AdSense.

Trade Arabia reports that advertisers have great hopes for the mobile market due to the personal nature of phones. Although the total sums were still small compared with the online advertising market, the growth in demand is clear, and new phones, tablets and technological advances will further nurture the market and lower prices. According to the report, the sector got a major boost from Google's deal to buy mobile ad firm AdMob late in 2009, and Apple's acquisition of Quattro Wireless,

At a launch event on April 10, for Apple's latest operating system for iPhones, Steve Jobs also announced an advertising platform called iAd in which Apple will sell and host ads to run on apps made by outside developers, who will get 60 percent of the ad revenue.

According to Reuters, Business 24|7 reports that Apple has recently acquired Quattro, a leading global mobile advertising company, a deal that will heat up competition between Apple and internet giant Google. The deal also indicates a sign of the growing rivalry between the two companies when it comes to mobile advertising on smartphones.