Use Google AdWords Conversion Optimizer to Increase Conversions and Decrease Cost Per Conversion

Anne Garcia - January 16, 2012

Are you interested in increasing the number of conversions on your site as well as decreasing your cost per conversion (also known as cost per acquisition or CPA) for your Google AdWords campaigns? If so, Conversion Optimizer is the solution for your Google AdWords campaigns.

Google says that on average, campaigns that adopt Conversion Optimizer achieve a 21% increase in conversions while decreasing their CPA by 14%. 

Conversion Optimizer uses your conversion tracking history to figure out how often each type of auction leads to a conversion and based on this past performance, Conversion Optimizer creates a prediction model to guess which auctions will perform best for you in the future.  Then, it adjusts your bids on an ongoing basis so that your money is efficiently used in each auction. It will generate an ad rank by your CPA bid, quality score and predicted conversion rate.

With Conversion Optimizer, you can set a maximum CPA (the most you are willing to pay for each conversion) or a target CPA (the average amount you would like to pay for each conversion). In addition, you can set a different maximum or target CPA for each campaign. So if you have a product line that you are willing to spend additional funds on in order to get a conversion, you can bid a higher CPA for that campaign compared to a different line of products.

Please note that you must have at least 15 conversions in the last 30 days from a campaign to implement Conversion Optimizer. In addition, you can not enable ad scheduling for campaigns that are using Conversion Optimizer.