If you try to search for smart pricing in Adsense help, you will be surprised that you’ll find no subject on the topic. It is because smart pricing is an automatic price adjustment feature introduced by Google in 2004 for its AdWord advertiser with the premise to increase advertiser ROI and a more targeted result. So it’s more of an AdWord feature rather than AdSense.
It works by analyzing all related data to certain clicks. The bottom line is that Google promise its AdWord advertiser that Google will reduce the price the AdWord advertisers pay for particular click if the click is less likely to have a desired result for the advertisers. In fact Google may reduce the cost of an ad to below the minimum bid assigned to it.
