Chomp launches auction-based Search Ads for mobile apps

App search engine Chomp introduced Chomp Search Ads, enabling mobile developers to bid on keywords or search phrases that deliver their applications when subscribers input those query terms.

The auction-based Chomp Search Ads platform begins with advertisers setting up an account and preloading it with ad dollars. Chomp recommends search terms for each application, and developers may also request terms--from there, developers bid for rights to each keyword, establishing a maximum bid price for a given query or phrase as well as daily bidding limits. Chomp will show ads for apps based on factors including bid price and search relevancy--the firm states that increasing the bid price will boost the chances of an ad showing, but adds that Chomp users will always receive the most relevant search results regardless of any extenuating circumstances.

Chomp Search Ads is currently available in private beta. Developers including Zaarly and Milk are participating in the trial. Chomp will bill advertisers' prepaid accounts when users click through to their ad via the "Get It" button. The company also will provide detailed reporting enabling advertisers to measure their campaign success.

Research firm Gartner states that marketers spent $893 million on app advertising in 2010, a number forecasted to reach between $15 million and $20 million by 2014. Developers presently spend anywhere between 20 percent and 30 percent of total app revenues on efforts to acquire new users through a range of advertising and marketing initiatives.

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