Google Tracking and Smart Pricing?

So who uses google's tracking for sales, ROI, etc?

[itisgene]

We use our own tracking solution plus a third party web analytics to track the sales. To manage the performance of the ppc campaigns, it is critical to have detailed sales reports.

Google and Overture has its own tracking tools for advertisers, which are not helpful for contextual ads yet.

So, my question is "does google adjust bid prices for the contextual ads based on the ROI they are tracking or something else?".

Because I know that all of the top 10 advertisers in our industry do not use Google's tracking tool. All of them have their own tracking solution that can track any online marketing program. Then how does Google know if the traffic the Adsense publishers are sending is converting or not? If Google doesn't know from their tracking tool, how this smart pricing work? Only based on small advertisers who use this ROI tracking too, Smart Pricing will not be "Smart" enough to determine the right price.

Any one wants to share if you have used/are using Google's ROI tracking tool and what the experiences are like on Smart Pricing?

[europeforvisitors]

When "smart pricing" was announced last April, Google suggested that the type of content was a factor in smart pricing. As I recall, two examples were given: a camera-review site and a page of photography tips, with the former expected to convert better than the latter.

So, even if the major advertisers in your industry aren't using conversion tracking, Google may feel that it has enough information--based on studies of data from many types of advertisers and Web sites--to extrapolate what discount an advertiser should receive on certain types of pages or sites. (And if it has conversion data for individual content publishers' sites or accounts, so much the better.)