Smart Pricing: Why Cost per Conversion Is the Best Metric to Measure Success
In search, Google uses a feature called the AdWords Discounter so that you only pay a penny more than necessary to appear just above the ad below yours. Google uses a different set of pricing rules for the content network, called smart pricing.
With smart pricing, Google looks to see if a page is more or less likely to end in a conversion action. If a page is less likely to end with a conversion, Google may discount the price of that click. If a click is more likely to turn into a conversion, they may charge more for that click (up to your maximum CPC).
Note: While Google ...
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