Google has revealed that it plans to purchase mobile display advertising company AdMob for $750 million in stock.

AdMob was founded in 2006 by Omar Hamoui, apparently because he couldn’t find “good ways to generate traffic for his mobile site”, and has built itself on creating banner ads that are viewed on the iPhone or other mobile sites.

“We’ve written in the past about how mobile phones are becoming an increasingly indispensable part of our daily lives, and we continue to see how great devices with full Internet browsers and vibrant app marketplaces are driving an explosion of usage,” said Susan Wojcicki, vice president of product management and Vic Gundotra, vice president of engineering, in a post on Google’s official blog.

The search giant maintains that the decision to purchase AdMob will be beneficial to publishers of mobile websites and applications, and will mean better products, tools and effective monetisation of its content, allowing Google to focus more on its users and less on how to generate revenue.