Google AdMob Axes Minimum Bids, Targeting Fees

Written on
Feb 9, 2012 
Brian LaRue  |

ADOTAS - As of Feb. 15, Google will change its bidding model for cost-per-click (CPC) mobile ads, adapting what product manager Chrix Finne described in a blog post yesterday as “an AdWords-style auction, where the winning price is determined by the quality of the ad and the other bids on that impression; the price we charge will never exceed the advertiser’s bid.” These changes to Google’s AdMob mobile advertising platform will eliminate existing minimum bid requirements and targeting fees. Finne went on to explain this means advertisers could receive cheaper clicks, depending on the inventory in question, and that “high-quality ads will be rewarded with an improved chance at winning the auction” per the law of supply and demand.

These changes put AdMob in a more competitive position among other ad marketplaces (TapJoy announced $0.10 minimum bid last week) and allows even more new advertisers to jump on board the platform.

Nothing is scheduled to change for campaigns that are not CPC.

Adotas Senior Editor Brian LaRue has been working in journalism in some form or another for slightly longer than his entire adult life, having won his first SPJ (Society of Professional Journalists) Award while he was still in high school. Prior to joining Adotas, he served as a reporter, editor, columnist, critic and blogger, mostly for a number of daily and weekly newspapers scattered around his native Connecticut. In his off hours, Brian maintains an active parallel life as a musician and music blogger.

Reader Comments.

What exactly makes an ad “high quality”?

Posted by VB | 10:08 am on February 10, 2012.

According to Admob, the “ad quality” is based on the ad campaign’s previous performance. (so I assume this means new campaigns are auto-rated as trash?) and most importantly… “other factors”

Does that clear it up for you?

Posted by Hairy Joe | 1:29 am on February 14, 2012.

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