AdMob may win big even as privacy debate rages

AdMob Inc. isn't well known among consumers, but privacy groups, the Federal Trade Commission and mobile businesses all know its name.

The 160-person San Mateo (CA) company is at the center of what could be the next big online opportunity, as well as a raging debate over privacy in the digital age and an escalating war between Google and Apple. The company works with marketers, application developers and publishers to place display advertisements on mobile devices. It's not a huge market today, but most observers expect that consumers will eventually conduct the majority of their online surfing over smart phones, tablets and similar contraptions. It's a promising enough opportunity that Google, which has made a concentrated effort to parlay its Internet dominance into the mobile space, agreed to pay $750 million for the 4-year-old company in November. Apple, with its lucrative iPhone franchise to protect, quickly countered with a $275 million purchase of AdMob rival Quattro Wireless. What's the appeal?