According to Google, it will be changing the way that AdMob handles auction bidding on cost per click ads. The company will start on February 15th change to an AdWords-style platform that will award placements based also on the quality of the advertisement and the other bids. The goal, according to the blog post, is to allow more effecent pricing and even cheaper CPC’s depending on the inventory.
One good news is that it will eliminate the need for minimum bids and targeting feeds, and will focus on supply and demand.
The reason for this change is most likely to eventually integrate it completely into the Google Adwords system, so that advertisers can buy inventory via AdWords onto mobile.