Google Adwords Conversion Optimizer Explained Part 2

Adwords Conversion Optimizer is now made available to campaigns using Adwords Conversion Tracking with at least 50 conversions in the past 30 days. Previously, the Conversion Optimizer was only available to campaigns with at a minimal of 200 conversions.

Besides enabling the Conversion Optimizer, you should ensure:

Your campaign has been using AdWords conversion tracking for at least two weeks.
Your campaign is direct-response oriented and your campaign’s conversion type is defined, for example as a completed purchase or signup.
Your campaign has been receiving conversions at a similar rate for the last several days.
Your campaign has no major changes within the last two weeks such as moving your conversion tracking code or redefining your conversion event.

Once you have activated the Conversion Optimizer, you still pay for CPC, not for CPA.

Once the Conversion Optimizer calculates a predicted conversion rate for a particular ad impression, it multiplies the predicted conversion rate by the maximum CPA bid to come up with an equivalent maximum CPC bid. If this equivalent CPC bid is greater than the keyword’s minimum search bid, the equivalent CPC bid is used in the auction as a maximum CPC normally would be.

The Conversion Optimizer manages your ad placement in each auction so that you receive as many profitable clicks as possible and receive as few as unprofitable clicks as possible.

For example, the keyword “flowers” may have a 2% conversion rate while the keyword “roses delivery” may have a 7% conversion rate. That doesn’t mean that you don’t want any clicks on “flowers,” but you probably wouldn’t want to spend as much on that keyword as you might be willing to spend for clicks on “roses delivery.” The Conversion Optimizer uses information like this to adjust your bids based on how valuable each click is for you.

When adjusting the cost-per-click bid, Adwords Conversion Optimizer also takes into account factors including:

The country a user is browsing from
The search partner site or content network site your ad appears on
The broad match keyword a searched query has matched on

You will not be able to use the following Adwords features with the campaigns that have Conversion Optimizer enabled:

Separate Content Bids
Position Preference
Advanced ad Scheduling

For your campaigns to be eligible for using the Conversion Optimizer include:

Your entire campaign can have no more than 64 ad groups and no more than 2,000 keywords
Your campaign must target no more than one language in which the language must be one of these: English, Spanish, French, German, Portuguese, Italian, Danish, Dutch, Finnish, Norwegian, Swedish, or Simplified Chinese.

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