Admob recently announced a big price drop on certain bits of inventory. As the biggest player in the mobile advertising industry admob's pricing really makes a big difference to the market overall. The reduction in costs for certain ads potentially opens up the market for PPC arbitrage in mobile for people using mobile affiliate marketing or other mobile advertising networks. Also the drop in iphone advertising prices in particular might open up opportunities for iphone developers looking for a way of promoting their app.
For publishers running admob's ads this is a mixed blessing. On the one hand, fill rates for inventory have skyrocketed after being at a very low level earlier this year. On the other hand, higher fill rates come at the cost of a lower eCPM. It may be that admob is lowering its prices as publishers are starting to use mobile ad network aggregators and their own ad servers to push in inventory from other mobile ad networks to make up the gap left by admob's higher prices.
The details of the price cuts are below:
For iPhone ads targeting all United States traffic (i.e., all US with no further targeting options selected), the minimum bid will decrease from $0.10 to $0.05.
Ads targeting specific carriers
The minimum bid for targeting for big 4 US carriers (AT&T, Sprint, T-Mobile & Verizon) will remain unchanged, ranging from $0.11 - $0.15. The minimum bid for targeting for all other carriers will decrease from between $0.11 - $0.15 to $0.05.
Ads targeting all countries and carriers
For non-iPhone ads targeting all countries and carriers (i.e., no further targeting options selected), the minimum bid will decrease from $0.03 to $0.01.