Google Ads has switched from Smart Pricing to Smart Bidding for search partner sites that utilize conversion tracking.
This change affects sites in the search network that partner with Google to show ads.
As Google explains, Smart Bidding can offer better performance by using a wider range of contextual signals to optimize bids for every auction.
Some of the signals Google’s Smart Bidding uses to automatically optimize bids include the type of webpage on which the ad was served and attributes about potential customers.
“For example, if you have a $50 cost per conversion on Google Search but lower conversion rates on partner sites, then Smart Bidding may set lower bids to help achieve a $50 cost per conversion. Alternatively, if you get a better conversion rate from a search partner site, Smart Bidding may raise your bid to help you get more traffic and conversions from that site at the $50 cost per conversion you receive on Google Search.”
With Smart Bidding, some clicks on the search partners sites may cost more or less than an advertiser’s Max. cost-per-conversion bid on the Search Network.
This helps ensure advertisers get a similar cost-per-conversion as the Search Network