New Google Adwords system will make mobile advertising easier – and more expensive

Google is upgrading its online advertising service Adwords to make it easier for marketers to reach users on different devices. This is said to be the biggest change in Adwords since its inception.

The revamped AdWords service, called ‘Enhanced Campaigns (left),’ will allow companies to manage bids for ads running at different locations and times. Google sells advertising keywords displayed alongside search results via an auction system.

Google is aiming to boost mobile advertising as users increasingly switch from desktops to smartphones and tablets. Google’s mobile revenue from search- based advertising more than tripled in the fourth quarter of 2012 from a year earlier, according to analysts. Over the past year, Facebook has substantially increased built up mobile advertising, which now makes up 23 percent of its total ad revenue.

The overhaul will also let companies track the performance of their advertising campaigns, with tools that measure what happens after users see ads.

Crucially the changes will also lead to an increase in prices as advertisers will no longer be able to buy spots on tablets and smartphones separately from desktops (desktop spots are currently more expensive).

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