BREAKING: The deal is set. The makers of all those little ads you see floating around your smartphone as a small, wide banner, have been acquired by Google. Let's see how Google will evolve AdMob and if they try to take on Apple's upcoming mobile advertising platform iAd, arriving in iPhone OS 4 this summer.

Google writes:

Last Friday, we said that mobile advertising was moving fast. So are we! Today, we closed our acquisition of AdMob. Omar Hamoui has built a great team and great products at AdMob and we’re thrilled to officially welcome them to Google.

We’ll now begin the process of bringing our products and teams together in the best way, and building new products and features together. We’re working to make this integration happen as fast and as seamlessly as possible. We’ll actively keep our clients up-to-date as we bring our businesses together — stay tuned!

It’s clear that mobile advertising is becoming a much larger part of our clients’ and partners’ strategies and with this acquisition, it’s now a central part of our own business. In continuing to invest in this highly competitive area, we’ll be bringing together our technology, resources and expertise in search advertising with AdMob’s innovative solutions for advertising on mobile websites and in mobile applications.