Recently, admob made an announcement that they are changing the AdMob auction for their CPC ads. Checkout their official announcement:
To ensure that we deliver the most effective mobile ads marketplace to our customers we are changing the AdMob auction for all cost-per-click (CPC) ads.
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. In addition, we’re removing minimum bids and targeting fees to allow AdMob CPC advertisers to compete for inventory under the natural forces of supply and demand.
Advertisers will benefit from more efficient pricing and could receive cheaper clicks depending on the inventory on which they bid. High quality ads will be rewarded with an improved chance at winning the auction.
This change will occur for all CPC auctions globally on Feb 15th. There are no changes to non-CPC campaigns at this time. Advertisers should monitor their bids to see the effect on their particular campaigns, and be prepared to adjust bids & budgets to ensure they are meeting their volume & ROI goals.
We look forward to bringing AdWords auction components that have been refined over the years to the AdMob platform to benefit advertisers, users, and publishers.
So what does this mean for you? What this means is that your ad quality is of much greater importance now than it was before. Similar to adwords, the quality of your ad can make a big difference on the price you pay for your clicks and if your ad gets shown.
Why are they doing this? Well, it’s basically to help rid the CPC platform of what Google calls “low quality” ads. Just like they have done with adwords.
This means that it’s extremely important that you create high quality ads to ensure that your click cost is low and you are getting the maximum amount of inventory.
Affiliates with high quality and high click-through ads are going to be rewarded handsomely for a while as many advertisers get slapped and try to scramble to regain their inventory.
You can take advantage of this if you are able to create high click-through ads. So jump in and create some campaigns with “high quality” ads…and you’re very likely to see a TON of cheap traffic while other advertisers blow up around you in mass confusion.
Happy cheap mobile traffic while it lasts!!!