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The New Advertising Age

Meet Omar Hamoui, the entrepreneur who channeled innovation and frustration to build a mobile advertising network Google couldn't live without.

This story appears in the March 2010 issue of Entrepreneur. Subscribe »

The story behind the startup that grew to become the biggest acquisition in 's history begins five years ago in a small dorm room on the campus of the University of Pennsylvania. At the time, Omar Hamoui was pursuing an MBA degree at Penn's prestigious Wharton School while struggling to kick-start fotochatter, a mobile social networking startup that lets users share photos with friends. The challenge was reaching consumers: for a mobile service was not only impractical, it was also prohibitively expensive--Hamoui calculates that the time and money spent marketing the company translated to customer acquisition costs of $30 per user. So he turned to the emerging mobile web instead, paying sites a penny per click to promote the fotochatter solution. "About 10 percent of people who clicked the mobile ad signed up for the service," Hamoui recalls. "Our customer acquisition cost dropped from $30 to 10 cents overnight."

The lessons Hamoui learned from marketing fotochatter led to the January 2006 launch of AdMob, a mobile platform that allows advertisers and publishers to navigate the discovery, branding and monetization complexities hampering their own efforts to target wireless subscribers.

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