Rocco Alberto Baldassarre
AdWords Conversion Optimizer is a feature that by design enhances a number of bids based on the historical data inside your PPC campaigns. It is a multi-dimensional bid management tool based on the CPA bidding option, that optimizes the performance of our campaign (conversions), automatically modifying our bids after having analyzed our past performance data. Basically, Conversion Optimizer analyzes factors such as user location, match quality, user query and content site and, taking into account our past performance, elaborates a prediction model for the best performing auctions for our campaigns.
Conversion Optimizer selects a new bid for every auction, with the goal to reduce the cost per acquisition by spending cash on the search queries and sites where ads are for the most part prone to convert. It as well refines by the user’s operating system, location and more, helping you keep away from unprofitable clicks. With the Conversion Optimizer, you bid using a maximum cost-per-acquisition (CPA), which is the most you’re willing to pay for each conversion (such as a purchase or signup). Using historical information about your campaign, the Conversion Optimizer automatically finds the optimal equivalent cost-per-click (CPC) bid for your ad each time it’s eligible to appear. You still pay per click, but you no longer need to adjust your bids manually to reach your CPA goals and can benefit from improved return on investment (ROI). To calculate the optimal equivalent CPC bid, the Conversion Optimizer first calculates a predicted conversion rate for each auction, taking into account your ad’s conversion history, the keyword’s broad match query, the user’s location, and the conversion rates of Google’s search and Display Network partner sites. The feature then generates an ad rank by combining your CPA bid, quality score and predicted conversion rate.
The longer your campaign has tracked conversions, the more information that’s accessible to Conversion Optimizer. That’s the reason you’d want at least 15 conversions inside the past 30 days in order to allow the feature in your AdWords account.
Enabling Conversion Optimizer on Your Account
Foremost, you want to have a glance at your conversions. Google says you need at least 15 in the past month to enable Conversion Optimizer.
1. Choose a Campaign that’s Eligible for Conversion Optimizer. You’ll see a list of eligible campaigns. Click on the campaign that you want to enable Conversion Optimizer.
2. Go into Settings and Make a Few Adjustments. Prior to you moving forward the feature to start live, make sure your mobile bid adjustments are set to zero for the eligible campaign. Within your ad scheduling, you’ll also want to switch it to all days and all hours for that campaign. Then, you’ll want to head over to the bidding and budget section. Choose edit, click on: “focus on conversions.”
Go into the advanced options of that section next. choose the “target CPA” option – this is your target cost per acquisition, which is the average amount you want to pay per conversion.
All in all, Google AdWords Conversion Optimizer is s simple step that can drive your cost per acquisition down and without much hassle. Check it out, and let us know if you’re seeing the type of success we are.
Your campaigns need to meet the following requirements to apply conversion optimizer:
1. Your campaign uses AdWords Conversion Tracking or is importing data from Google Analytics.
2. The campaign has received at least 15 conversions in the last 30 days. This conversion history enables the system to make accurate predictions about your future conversion rate. So, the more data we have, the more accurate we can be.
3. The campaign must have been receiving conversions at a similar rate for at least a few days.
10 tips from Google for conversion optimizer success:
1 Pick between using Max CPA or target CPA based on your preference
2 Increase Max / Target CPA value to increase conversions and traffic. Lower it to decrease conversions and traffic
3 Get started with the recommended CPA bid and modify it accordingly to your needs
4 Conversion optimizer will improve its effectiveness based on the amount of historical data you have
5 You have to expect some sort of volatility in your account. CPA bidding will account for it and try to reduce changes in performance over time.
6 Do not make massive changes to your campaigns while using conversion optimizer (e.g. deleting all ad groups)
7 Do not remove your conversion tracking code while using the CPA bidding
8 Compare your results pre and post CPA
9 You can turn off CPA bidding at any point in time if it converts worse than before
10 If your campaign is limited by budget consider adding some to get more visibility and conversions
Before applying conversion optimizer, it’s best to assess your campaign and break down your ad groups into categories based on their CPA. Ad groups with similar CPA should be grouped into their own campaigns. Wait for a few weeks for your newly created campaigns to gather conversion data data, then apply conversion optimizer.