This seems like a good marriage to me (or is it an adoption?). More and more on google, I see adsense results that are local in nature, and with more focus on android, this is a perfect addition to get more ad real estate that is ___location based.

I use a lot of iphone apps, but more often than not, when I have my wallet out, I use the Yelp app to purchase food or drink. As a user, I'd be much more reluctant to utilize an admob ad on an unrelated iphone app or game as opposed to clicking on an ad when I'm trying to find a good thai restaurant somewhere in the midwest.