Google AdWords has added a new option to enable advertisers an to specify an average (i.e. preferred bidding) CPC or CPM bid, as opposed to a maximum CPC or CPM bid in their campaigns. If you select the new CPC/CPM option, your bids will fall around the price you picked. For example, if you want to target a $5 CPC, Google will make sure that the CPC price is around $5 each time.
This option gives advertisers more control over their campaigns, also allowing advertisers to stabilize their costs and save time so they don’t have to manually adjust their maximum bids. The option will be available to all advertisers by the end of this week. The option is opt in on the campaign level, so all ad groups and keywords under that ad group will default to the bidding option you select. If you do nothing, you will remain with the existing max CPC/CPM model. If you have more questions, visit the FAQs.