Google quality score for mobile ads quite obviously takes into account user location from business (organic listings algorithm also seems to take this into account). But now Google have announced that the users journey on sites will now be a component party of quality score . This reinforces Google’s commitment to mobiles and to improving the user journey by rewarding mobile optimized sites. As a user, this is an extremely positive move as I abhor navigating desktop sites on my mobile.
Half of this means better rank and lower cpcs for advertisers with mobile optimized sites and the other side of the coin is advertisers without mobile sites paying higher cpcs. There are many advertisers who do not have mobile friendly sites for a wide variety of reasons such as cost or lack of m commerce solution. Google is blanket penalising these advertisers. One solution is to stop advertising on mobile devices, however more and more searches ares undertaken on mobiles and this would reduce your coverage.
I think all sites need to have a mobile friendly iteration so Google’s announcement is good ammunition for getting that site finally built!