(cross-posted on the Google Mobile Ads Blog)

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.

Please visit the Help Center for more details.

Posted by: Chrix Finne, Product Manager