Google AdMob: No More Minimum Bid
In what may be a play to broaden its reach among mobile advertisers or to undercut competition, Google announced it was changing its model for bidding on cost-per-click ads. There will
no longer be a minimum bid or other charges attached to an ad buy.
Product Manager Chrix Finne announced on the Google Mobile ads blog: “Effective February 15, 2012, AdMob will move to 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.” That means no more minimum bid and no more additional targeting fees, he went on to say.
Finne says the new policy is likely to result in lower overall campaign costs for many buyers. “Higher-quality ads will be rewarded with an improved chance at winning the auction.”
The removal of a minimum bid follows ad marketplace TapJoy’s announcement that it was coming out of beta last week with a $.10 minimum bid per action.
Todd Miller, managing partner, The Archer Group, thinks it is a smart move for Google. He and his company buy performance ads in AdMob for CPG, utilities and food and beverage segments. "I don't think it's about buyers as much as the mobile marketplace overall," he tells me. This move reduces the barriers to entry for new (to-advertising) developers and content providers, it helps to further differentiate self-service AdMob from iAds, and it impacts the platform landscape."
Whether Google is feeling the heat from competitors in the space is anyone’s guess. It may simply be trying to apply to mobile some of the open market principles that helped make AdWords so accessible to every range of business, low barriers to entry and control of costs.
Recent Mobile Marketing Daily Articles
-
The Latino M-Shopping Advantage May 24, 8:58 a.m.
At Wednesday’s OMMA Mobile at Internet Week event in New York Anheuser-Busch CMO Paul Chibe kicked ...
-
Now Your Car Will Tell You How Much Money You Still Owe On It May 23, 9:34 a.m.
The in-car extension of mobile media raises a whole new set of issues about the relationship ...
-
Samsung Says Oh, Let's Fragment The Market A Little More May 22, 9:10 a.m.
Remember when the feature phone market was a hopelessly chaotic sea of incompatible phones that required ...
-
Seamless and GrubHub Merge To Form A Takeout Powerhouse May 21, 7:16 a.m.
While Yahoo and Tumblr took all of press oxygen out of the ecosystem yesterday, and the ...
-
Yahoo To Announce $1.1 Billion Acquisition Of Tumblr May 20, 8:48 a.m.
One of the worst-kept corporate secrets in recent memory, Yahoo’s hope to buy blogging network Tumblr, ...
-
Oscar Mayer Offers Build-A-Grump App May 17, 7:55 a.m.
T The best and most enduring ads are likely not the ones that shock and surprise ...
-
Glass Half Full: 10% Of Americans Say They Would Tolerate Google's Geeky Gadget May 16, 9:41 a.m.
A new study from BiTE interactive of 1000 U.S. adults via an online survey found that ...
-
'Home Roaming': 20% Of Home Broadband Traffic Going To Devices May 15, 9:15 a.m.
The great untethering is well underway as we have doubled our use of broadband at home ...
-
Google Quietly Departs Feature Phone Era: Shutters SMS Search May 14, 7:49 a.m.
This is a good day to wax nostalgic about multi-tap keypads and formerly massive 2-inch flip ...
-
ESPN Mulling Data Subsidies: The Return Of The Carriage Fee? May 13, 9:09 a.m.
My guess is that the recent story in The Wall Street Journal about ESPN talking with ...
Be the first to comment on "Google AdMob: No More Minimum Bid "
Leave a Comment