Our industry is in mad love with Mobile, and competition between big companies like Google, Facebook and Apple not only drives innovation, but also makes advertisers plan media differently. In what may be a game changer in the Mobile space, Google made an announcement about important changes being made to the AdMob CPC ads.
Effective February 15th, 2012, the AdMob CPC ads would be entered into an AdWords-style ad auction, where the winning bid will be determined by the quality of the ad and the other bids at that time. There will be no minimum bids, which lets advertisers compete for inventory under the supply and demand model.
Google’s announcement of a bid based model with quality score can revolutionize how we plan and buy media. Real time bidding can ensure cheaper and more quality clicks for advertisers. With no minimum bids needed, this will also invite a whole new set of advertisers into the Mobile world.
Google has been a trend setter in many areas for years now. In the nineties, we had directory based listings before real time searches evolved. If your website was listed in the Yahoo directory, you had made it.
CPM and Fixed cost buy was the norm. With bid based CPC, and minimum spend requirement no longer needed, you can potentially reach new customers through Google’s ad words platform regardless of what your budget is. Quality Score further revolutionized paid search advertising by putting the onus back on the advertiser. How much you pay not only depended on what the existing bid is, it also depended on the quality of your ad. It meant you could now be paying lower than your actual bid, if your quality score is good. It is no longer the advertiser setting the price; the Market now set its own price.
Today most Demand Side Platforms (DSPs) for Display ads mirror this format. An automated system that allows advertisers to manage multiple ad exchange inventory through a common interface. Buying happens real time and prices are based on the inventory you bid and the existing demand for it.
The Mobile war is in full swing. Reports indicate that Facebook will be launching Mobile advertising with its famed Sponsored stories ad format. Apple already offers its rich iAds. While Facebook sponsored stories on Mobile will allow for individual endorsements to travel to a much larger audience and create larger impact, AdMobs self service CPC model will open up the market and allow a whole set of new advertisers enter the market.
What AdMobs latest offering means to the advertiser:
- There will be no minimum bids requirement
- You will not pay more for a CPC click than what you contract
- There will be no system defined targeting fees charged
- Your ads Quality score will be a factor in how much you pay
- This will only affect CPC banners and CPC text & tile ad units
Welcome to the brave new world of Mobile!
Alok Rodinhood Kejriwal
fantastic!!!!
Sai Rodinhood Pothuri
Hi Gurpreet Singh
Really Love’d it .. even learnt some thing from your post.. Thanks for sharing
Thanks
Sai