what is smart pricing?

[indias next no1]

hello friends,
in most of the threads the word "smart pricing" has been used, i can't understand what it means.
please let me know in detail.

thanks

[bts111]

Check this out

[adwords.google.com...]

[Buzliteyear]

Aside from what is actually posted on the Google site, the rest is speculation, so take this post with that in mind.

It seems that G tracks how well your site converts clicks to conversions or the probability of clicks to converstions. If they determine that clicks from your site do not result in conversions, your EPC is adjusted down.

It is an ongoing process which can change from day to day.

[indias next no1]

thanks for your replies,
i can't understand how google can trace a advertiser's clicks convert to sales, what's the technique behind it.

Whether the advertiser will inform google about his clicks convert sales? if so, he may tell lies to avoid high CPC. isn't.

[europeforvisitors]

i can't understand how google can trace a advertiser's clicks convert to sales, what's the technique behind it.

Sales or "business actions" such as registrations, requests for literature, newsletter subscriptions, etc. The advertiser defines what a "conversion" is.

[indias next no1]

Europe for visitors :
how can google track a registration of an advertiser, whether there is any option in adwords to track the registration etc.,