Bidding on Search partners sites and the Google Display Network can use either Smart pricing or Smart Bidding. This article explains how these two bidding methods work.
Smart pricing may adjust your cost-per-click (CPC) bids on the Google Display Network and Google Search partners sites.
With smart pricing, if Google Ads data shows that a click from a Google Network webpage is less likely to turn into an actionable business result – such as an online sale, registration, phone call or newsletter sign-up –Google Ads may reduce the bid for that webpage.
Many factors are taken into account, such as which keyword lists or concepts triggered the ad as well as the type of webpage on which the ad was served. For example, let's say that you advertise digital cameras. Your ad appears on two different webpages: a Google search results page for the keyword 'digital cameras' and a Google Network page about digital cameras. If Google Ads determines that your ads are not likely to perform as well on a Search partners site, the Google Ads 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 Google Ads.
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.
If you’re tracking conversions and bidding manually, you may use Smart Bidding instead of smart pricing on Google Search partners sites. With Smart Bidding, bids are automatically optimized on Search partners sites, using a variety of signals such as the type of webpage on which the ad was served and attributes about potential customers. For example, bids may be reduced if the potential customer is on an audience list that historically had a lower conversion rate.
To help you get a similar cost-per-conversion (CPA) as the Search Network, some clicks on the Search partners sites may cost more or less than your Max. CPC bid on the Search Network. Note that some conversions on Search partners sites may cost more or less than conversions on the Search Network.