Topic targeting is an easy way of placing your AdWords ads on multiple pages about a specific topic at once. Targeting by topics is an alternative to selecting individual placements where your ad can appear, or individual keywords that will trigger your ad.
"Topics" is the AdWords term for specific industries or interests, such as agriculture or music. If you'd like to target pages with specific content, you can select one or more topics so your ads appear on pages about those topics.
By targeting the "Autos & Vehicles" topic, for instance, you enable your ad to appear on any Google Display Network website or other placement that includes content about cars or other automotive themes. You can also select more precise subtopics, such as "Trucks & SUVs," "Commercial Vehicles," or "Motorcycles."
Pricing for targeting by topics works the same way as pricing for other placement-targeted ads. You select the maximum price you're willing to pay each time your ad appears, and the AdWords system will show your ad on pages on the Google Network with content about that topic where your bid can win a position. A popular topic may have thousands or even tens of thousands of pages where your ad can appear.
Posted by Omar Selman - Google AdWords MENA
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