About smart pricing
Smart pricing is a Google feature that may reduce your cost-per-click (CPC) bids on the Google Network.
We are constantly analysing data across our network against a variety of factors. 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 sign-up - we may reduce the bid for that page.
We take many factors into account, such as which keyword lists or concepts triggered the ad as well as the type of page 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 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 search, the AdWords system may reduce the maximum CPC bid for that site.
Google saves you time and hassle by estimating the value of certain clicks and adjusting bids on an ongoing basis. With no extra effort for you, Google technology helps ensure that you get strong ROI from your AdWords advertising.
You don't have to do anything to take advantage of this 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.