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This is a huge deal with many implications for smartphone advertisers/publishers/users in the future. I've been a AdMob publisher for about 6 months now and know exactly why Google is making this play -- extremely smart on GOOG.
Congrats to Omar and crew at AdMob --
"Our business development team will keep working to maximize ad revenue for the more than 15,000 mobile Web sites and applications that make up AdMob's publisher network. Our sales teams will keep working with our thousands advertisers to deliver successful campaigns and our marketing group will keep pushing to get the word out about mobile."
What a geek/inventor's dream to get so much cash for R&D... NICE!