What is Google Smart Pricing?

Google Smart Pricing system is designed to help AdWords advertisers to improve their return on investment (ROI). Google smart pricing system is basically a system that will adjust contextual click costs for Adwords advertisers automatically based on a set of values. Google does not disclose much about the values it uses for its smart pricing system. The mechanism of smart pricing system remains largely undisclosed.

How Does Google Smart Pricing Affect AdSense Publisher?

Google Smart pricing is designed to help advertisers to improve the effectiveness of their advertising campaign over Google content network. As a result, Google is making less money since the cost to advertisers is reduced. Indirectly, smart pricing affects the earnings of AdSense publishers because they are paid lesser.