Articles in The 'Conversion-Optimizer' Tag

January 16 2012

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

by Anne Garcia

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.

May 6 2009

Maximize Campaign Performance with a New Bid Strategy

by April Nelson

So your AdWords campaigns have grown into architectural masterpieces -structured with multiple, tightly-themed ad groups each containing precise keyword lists that have been expanded, scrubbed, and polished over time.  You are rotating 3 or more versions of ad copy concurrently, removing the impression-cannibals and replacing with fresh ads — always aiming to improve upon click through rates.  Now what?

To make even more of an impact, consider layering on Google’s Conversion Optimizer as part of your overall bid strategy.  Conversion Optimizer is a feature provided by Google that allows you to bid using a max CPA (cost per acquisition or lead) strategy.  This setting is applied at the campaign level.  Google will optimize your campaign performance for the best possible ROI.  CPA bids are set, but you are still charged on a per click basis.  The tool calculates a CPC bid, working back from the max amount you are willing to pay for a conversion, and also using historical conversion data to determine the likelihood your ads have to convert. 

Conversion Optimizer should be considered for campaigns:

  1. Generating conversions on a regular basis at a similar rate
  2. With a Minimum of 30 conversions over the last 30 days (required)
  3. 2 weeks minimum recommended conversion tracking history

Be aware that it is possible to exceed your max specified CPA. Changes to your website and ad copy should be made cautiously during the early stage use of Conversion Optimizer.  These types of changes can have a huge impact on your conversion rate.  If the actual conversion rate turns out to be lower than the conversion rate predicted by Conversion Optimizer, your actual CPA may exceed your maximum CPA bid. 

As with any new strategy, tracking results after changing from manual bidding to Conversion Optimizer is critical.  The chart below provides a snapshot comparison of campaign performance for a 10-day timeframe running Conversion Optimizer versus manual bidding. 


If we were measuring success by click through rate or cost per click, our test would appear to be a failure.  However, our goal with this client was to maintain a consistent lead flow at a pre-determined cost per lead.  With the implementation of Conversion Optimizer, we saw just under a $6 decrease in the cost per conversion over the first 10 days of use……translating to 14 additional leads for our client.

Don’t overlook your top campaigns for bid optimization!  While a manual bidding strategy is necessary for establishing strong positions and click through rates, a CPA bid strategy powered by Google’s Conversion Optimizer can be ideal for taking established campaigns to the next level.  Although campaigns may continue to convert at a respectable rate, you may be missing out on volume by not leveraging this free tool.

February 3 2009

Save Time and Money with the Conversion Optimizer

by Sonya Wood

Conversion Optimizer is a Google AdWords tool that manages your keyword-level bids to deliver as many conversions as possible at the cost per conversion goal that you specify.

People in the search engine marketing industry, are always looking for more conversions at a lower cost. Who isn’t? Constantly monitoring your keyword bids and trying to find that “sweet spot” for a cost per conversion can be time consuming and often, overwhelming. With the Conversion Optimizer, there are no more CPC adjustments needed to reach your goal. You set your max CPA (cost per acquisition) and the tool will automatically change your bids based on those goals.

By analyzing historical information for search terms in your campaign, Conversion Optimizer determines how likely your keyword is to trigger a conversion. It will adjust your CPC bid according. Geographic locations are also taken into consideration since the likelihood of a conversion can vary per location.

Automated bid management tools can be very expensive but Google’s Conversion Optimizer is free. However, there are some requirements that must be met however. First, Adwords Conversion Tracking code must be enabled and placed on conversion points within your website. Second, the campaign must have had at least 30 conversions in the last 30 days. The tool relies on conversion history in order to make accurate predictions about your future conversion rate.

Keep in mind that you will still be paying per click even though you are designating a CPA. You can change your CPA bid as many times as you like and can disable this feature at any time.

By using the available tools and trusted methodologies, it is possible to increase your conversions while decreasing your overall costs. Conversion Optimizer is a tool that could not only save you time, but also save you money.

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