(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
More at google's blog
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