Google's AdMob eliminates minimum bids and targeting fees in move toward AdWords-style auctions

In a very interesting development in the mobile advertising space, Google’s AdMob said today that it’s getting rid of minimum bids and targeting fees as it changes toward a more traditional auction-based model.

That makes it the second big app marketing player in recent weeks to drastically cut or get rid of minimum bids. Tapjoy cut its minimum bids to 10 cents late last month when it said it came out of beta.

Starting next week, AdMob is going to be run more like AdWords, where advertisers compete on bids and quality of ads to win placement.

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