AdMob is the world’s largest mobile advertising marketplace, offering solutions for discovery, branding and monetization on the mobile web. Mobile devices are a critical media platform and we are building the tools to let every business on earth leverage mobile.

Google’s purchase of AdMob Inc. will make it the Internet’s largest mobile advertising company. The AdMob acquisition will help Google enter a market on the iPhone where it has only tested the waters so far. Google began a revenue-sharing pilot program to place targeted advertising in applications in June. But Schmidt said that mobile revenue is growing faster than regular revenue, and Google wants to expand its role even further in the mobile phone space.

Google’s presence on the iPhone outside of advertising is already large, with the YouTube and Maps applications as native software on the platform.

“One the key success points for the iPhone was this enormous development of apps, and particularly free apps, which are advertising supported,” CEO Eric Schmidt said. “Now that we have our Android platform coming out, and really with some serious partners behind it, it will also be important to have that be true for Android as well as the others.”