Although Google already has a significant foothold in the iPhone market thanks to Google Maps and YouTube being integral to Apple's device, its acquisition of AdMob will allow it to drive further revenue from its often stormy relationship with this market.
AdMob cost Google a quarter of a billion dollars and the service currently provides advertising within free iPhone applications, reaching millions of users worldwide.
Google's Chief Executive Eric Schmidt stated that the acquisition was part of a larger plan to allow the company to spread advertising and fund free applications on handsets running the Google Android mobile operating system.
There are obvious financial benefits to be gained from the purchase, as the revenues from mobile advertising are set to boom over the coming years and the iPhone is at the forefront of the market in this respect.
The main issue faced by Google in their quest for iPhone dominance is that their relationship with Apple has taken some very public knocks in recent years.
Most notably it was Apple's rejection of the Google Voice application and the subsequent investigation by the FCC in the US that hinted at a lack of unity between the two technology giants.
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