Thursday, September 27, 2007

Adwords New Feature: Conversion Optimizer

Use the Conversion Optimizer to save time and minimize conversion costs

Adwords rolled out conversion optimizer last week, which is capable of optimising your campaigns just like any other automated software based on CPA strategy. This is Adwords second release allowing advertiser to optimise campaign on CPA basis A) PPA and now B) Conversion Optimiser.

The Conversion Optimizer lets you specify a maximum cost-per-acquisition (CPA) bid for each ad group. Then, this feature continually adjusts your CPC bids to keep your conversion costs under your maximum CPA bid, showing your ads only when you're likely to get conversions. By using the Conversion Optimizer, you can save time while minimizing your conversion costs. Learn more

What is Conversion Optimizer?

Conversion Optimizer helps you meet your ROI objectives by automatically managing your bids according to a maximum CPA goal. By automating the bidding process, this feature helps you minimize your conversion costs while saving you time.

How it Works?
Conversion Optimizer uses historical information about your campaign and automatically generates optimal CPC bids for each auction. You still pay per click, but you no longer have to manually adjust your bids to reach your CPA goals. Since the Conversion Optimizer can choose a new bid for each auction, you're provided with the additional benefit of spending money only on the search queries and sites where your ads are likely to convert

Advantages

  • Cost-effective and Intelligent Ad Serving (Most Awaited)Conversion Optimiser predicts a conversion rate for your ads every time they are eligible to appear. This prediction is based on various factors (search query, location of user, conversion history of site and their propensity to convert). Using real time performance data allows the Conversion Optimiser to adjust advertiser’s bids for better performance than one would get with manual bidding alone.
  • Automated campaign management
  • Works with both Search and Content Network

Limitations

  • Conversion Optimizer can only be applied to campaign having at least 300 conversions in the last 30 days.
  • Conversion Optimizer is not compatible with A) Position Preference B) Budget Optimizer C) Site Targeting D) Advanced Ad Targeting and E) Preferred Cost Bidding. If you are using any of the preceding features on your campaign then you cannot opt-in for Conversion Optimizer.
  • Conversion Optimizer may not be modified currently through Adwords Editor and Adwords API.
  • Actual CPA achieved may be higher than target CPA mentioned in CPA (your costs depend on factors outside Google's control, however AdWords system automatically adjusts your costs over time, with the goal of keeping your average CPA under the bid that you specified)

12 comments:

kishorg said...

hi kishor

i would like to know how conversion optimizer exactly works. can you help me on this

rajesh
raj123@yahoo.co.in

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