Google's smart pricing feature automatically reduces maximum cost-per-click (CPC) bids for certain pages in the Google Network.
Google is constantly analyzing data across the Google Network. If our data shows that a click from a Google Network page is less likely to turn into an actionable business result - such as an online sale, registration, phone call, or newsletter signup - we may reduce the bid for that site.
We take into account many factors such as what keyword lists or concepts triggered the ad as well as the type of site on which the ad was served. For example, let's say that you advertise digital cameras. Your ad appears on two different pages - a Google web search page for the keyword 'digital cameras' and a Google Network page about digital cameras. If Google determines that your ads are not likely to perform as well on the Google Network page as on Google web search, the AdWords system may reduce the maximum CPC bid for that site.
Google saves you time and hassle by estimating the value of clicks and adjusting bids on an ongoing basis. With no extra effort from you, Google technology helps you realize consistent value across Google and the Google Network.
There's no action required for you to take advantage of this enhanced pricing model. However, you may want to review your distribution preferences to determine whether you are currently taking advantage of both our search and Content Networks.
You may also wish to use the content bids feature, which lets you set one price when your ads run on search sites and a separate price when your ads run on content sites.
