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NEW YORK Google said it would let advertisers bid different amounts for keyword-targeted ads that run on content sites.
The move responds to long-running advertiser complaints that clicks from contextual listings do not convert as well as those from search, when a user has actively signaled intent by entering a query.
Google tried to quell those concerns in April 2004 with the introduction of a “smart pricing” system that would lower the cost advertisers pay for clicks from content ads if Google’s algorithms determine those clicks are less likely to convert to sales.
Smart
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