As OnlineMediaDaily reported on February 7, Google has updated AdWords to be better equipped on the mobile front. The update causes a ripple effect that will force more advertisers into mobile whether they had plans to or not, which will shake up the RTB space.
Google announced Enhanced Campaigns this week, which combines paid-search ads on desktop and mobile. The changes “rely on time, location, relevance, context and content rather than device distinction.”
Mobile ads have been relatively cheap, but the increased number of players will increase the cost. In any auction environment, including real-time bidding, more bidders means higher cost. That won’t make advertisers happy, especially those who have been taking advantage of the overabundance of mobile inventory compared to number of competitors.
There could be other pitfalls associated with the combining of desktop and mobile AdWords. Fewer campaigns could mean less data for marketers. Another potential issue in lumping together desktop and mobile ads is that it takes some of the wind out of creative mobile marketing’s sails.
Presumably, what Google wants is “smarter” ads and more manageable campaigns for everyone. Instead, there could be increased RTB costs for advertisers (good for Google, bad for advertisers), less creative mobile- and desktop-only campaigns, and a decrease in relevant data.