Google revamps AdMob auction bidding
Google (NASDAQ:GOOG) is changing the way its mobile ad network AdMob handles auction bidding on cost-per-click ads. In a blog post, the company said that beginning Feb. 15 it will change to an AdWords-style auction where the winning prize is determined by the quality of the ad and the other bids on that impression. The goal of these changes, according to Google, is to offer advertisers more efficient pricing and cheaper cost-per-clicks depending upon the inventory on which they bid.
Google added that the price it charges will never exceed the advertiser's bid and said that it is eliminating minimum bids and targeting fees to allow AdMob CPC advertisers to compete for inventory according to supply and demand.
This change will occur for all CPC ads on Feb 15, however there will be no changes to non-CPC campaigns.
Research firm IDC reported late last year that Google's AdMob controls 24 percent of the mobile advertising segment, ahead of independent Millennial Media at 17 percent and Apple's (NASDAQ:AAPL) iAd at 15 percent. Google generated nearly $40 billion in digital ad sales in 2011 across all platforms.
- see this Google blog post
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