Placements refer to placing online ads on specific websites and their pages. Within Google Adwords, this refers to placing ads on websites that are part of Google’s Display Network. Google Adwords allows placements based on keywords that you choose or the specific websites that you specify and that you know are frequented by your potential customers. The later types of placements are referred to as Managed Placements.
Although the first type of placements are not very popular among marketers as it results in a lot of untargeted traffic, managed placements are quite popular as they allow you to target customers of your choice. However, because of this those bids can also be expensive. For example, if you have a restaurant and would like your ad to appear in the New York Times’ Food section, you can assume that due to the high competition, your placement bids are mostly likely to be higher.