AdMob is currently testing automatic pricing adjustments aimed at reducing the maximum Cost-Per-Click (CPC) bids for certain sites or apps in our network.  For advertisers, this will save time and effort in estimating the value of a click and adjusting their bids on an ongoing basis. This test will reward publishers that deliver higher value clicks on the ads placed on their sites.

How this works
AdMob constantly analyzes data across our network to look for efficiencies and improve performance for our advertisers and publishers.  These ongoing analyses takes into account many factors such as: advertiser bid, competition across the network, the type of site on which the ad was served, and value of an ad impression to advertisers.  If our data shows that a click from a specific publisher page is less likely to accomplish an advertiser’s business objective we may reduce the maximum CPC for that site.

We are testing this change as part of our efforts to constantly improve performance for our advertisers. The goal of this test is to improve both results for advertisers and publisher quality.  With these optimizations, some of our publishers make less money on these reduced cost clicks since the cost to advertisers is reduced.  However, ultimately we believe this change will lead to higher payouts for publishers that deliver quality inventory by increasing the pool of advertisers and rewarding publishers who create engaging mobile sites.

Of course, advertisers and publishers should continue to pursue best practices in order to improve advertiser ROI and publisher performance.

For more information and discussion amongst other advertisers and publishers, please visit
AdMob’s Advertiser Group or AdMob’s Publisher Group.

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