• by Mark Walsh  @markfwal, January 13, 2010

Signaling growing consolidation in mobile advertising, carrier-backed mobile ad company Amobee Media Systems has acquired U.K.-based mobile ad exchange RingRing Media for an undisclosed amount. The deal follows closely on the heels of Apple's $275 million bid for Quattro Wireless and Google's $750 million bid for AdMob.

While this transaction is likely smaller, Redwood City, Calif.-based Amobee says it would create a mobile platform serving more ads per month than Quattro Wireless, estimated to have $21 million in ad revenue -- or a 7% share of the mobile ad market -- by technology research firm IDC.

Funded by wireless operators Telefonica and Vodafone and other investors including Motorola, Amobee is the carriers' answer to the dozen or so independent mobile ad networks. It works closely with operators to power advertising on their networks across different formats including the mobile Web, SMS text messaging, video, and applications and games.

Started in 2008, RingRing Media in London provides an exchange where mobile publishers, brands and agencies worldwide can buy and sell ad inventory in real-time to the tune of 4 billion impressions traded a month. Acquiring RingRing's mobile ad platform will complement Amobee's operator-centric inventory and help it to attract larger advertisers and ad buys, according to the company.

"This acquisition solves an industry issue. By leveraging the RingRing Exchange we are able to streamline the process and connect supply and demand using the best technology on the market," said Zohar Levkovitz, co-founder and CEO of Amobee, in a statement. "In doing so, we will be able to reduce the friction associated with today's mobile media buying and offer a more integrated mobile advertising experience to our customers."

Levkovitz also told the Financial Times that major brands like Coca-Cola are not interested in piecemeal campaigns, but want coverage across as many different devices and countries as possible. That's presumably where RingRing's exchange would come into play.

The British startup is likely to face heightened competition in its own backyard from rival ad network InMobi, which plans to expand European operations under newly hired ex-Google executive Rob Jonas. And with two mobile ad acquisitions already in 2010, don't expect it to be the last. Levkovitz himself said in announcing the RingRing deal: "We will continue to acquire adjacent companies, to build the world's largest mobile advertising player."

Many are also speculating that Yahoo and Microsoft -- on the sidelines so far -- will jump into the mobile acquisition game to keep pace with Google and other competitors. Companies including Greystripe and Millennial Media have been mentioned as possible targets.