Google announced Tuesday that auctions on search partner sites may use Smart Bidding instead of smart pricing when an advertiser has conversion tracking set up.
Google says Smart Bidding can offer better performance because it takes into account more contextual signals “to optimize bids for each and every auction.”
Smart pricing, which has been used to power manual bids for search partners, looks at signals such as the keyword lists or concepts that triggered the ad and the type of page on which the ad was served.
With Smart Bidding, Google says, the bids are automatically optimized on search partner sites, using the same signals as smart pricing plus 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.”