I’ve been using  Google’s conversion optimizer for a while now. First I was not sure, if it would work, but decided to give it a try. I set up conversion optimizer for one of my campaign, which was doing well by itself. I used recommended  CPA. First few days I did not see much of the difference in number of conversions. I was almost ready to go back to manual bidding, when something changed and my conversions started to increase. After two weeks of using Google conversion optimizer, my conversion almost double. Surprisingly my daily cost did not go up. Here is what Google says about conversion optimizer.     

What is the Conversion Optimizer and how does it work?

The Conversion Optimizer is an AdWords feature that uses your AdWords Conversion Tracking data to get you more conversions at a lower cost. It optimizes your placement in each ad auction to avoid unprofitable clicks and gets you as many profitable clicks as possible.

How it works

With the Conversion Optimizer, you bid using a maximum 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 ROI.

To calculate the optimal equivalent CPC bid, the Conversion Optimizer first calculates a predicted conversion rate for each auction. The Conversion Optimizer takes many factors into account, including your ad’s conversion history, the keyword’s broad match query, the user’s location, and the conversion rates of Google’s search and content partner sites. The feature then generates an ad rank by combining your CPA bid, quality score and predicted conversion rate.

Improving your performance

Many advertisers using Conversion Optimizer have achieved double-digit percentage increases in conversions, while paying the same price or less for each conversion.

Requirements

To begin using the Conversion Optimizer, you must have AdWords Conversion tracking enabled, and your campaign must have received at least 30 conversions in the last 30 days. Also, the campaign must have been receiving conversions at a similar rate for at least a few days. We recommend you run conversion tracking for at least two weeks before trying the conversion optimizer no matter what your volume of conversions is (more if you don’t have a high volume of conversions).

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