Adwords Fundamentals

With the Smart Pricing feature in Display, if our data shows that a click from a Google Display 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:

With the Smart Pricing feature in Display, if our data shows that a click from a Google Display 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:

  • Automatically adjust your daily budget to serve less ads on Google Display Network pages.
  • Use data from the Display Network auction to revise the cost of your Search Ads
  • Automatically reduce your cost-per-click bids on the Google Display Network
  • Send notification that your bids should be adjusted

The correct answer is:

  • Automatically reduce your cost-per-click bids on the Google Display Network

Explanation: 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 Google Ads system may reduce the maximum CPC bid for that site.

More read: https://support.google.com/google-ads/answer/2604607?hl=en

Ali Raza

Ali Raza is a Web Developer and Digital Marketing Consultant.

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