The Conversion Optimizer is multi-dimensional bid management.

Simple bid management	Multi-dimensional bid management
Varies bids by keyword only	Considers many other factors that indicate the value of a click (user location, match quality, user query, content site, etc.)
No other factors taken into account	Optimizes performance in real time based on the specific characteristics of each auction
Examples: manual bid management, 3rd party bid management	Opportunity to achieve much better performance

Example: Improving your search and content campaigns

Now that the Conversion Optimizer is installed, it is able to analyze past performance data and begin to optimize based on many more factors. In Tim's case, two major areas for improvement Conversion Optimizer identifies are: user location and strong performing broad match queries.

• User location: For the term 'custom surfboard', Conversion Optimizer found that some non-converting clicks were coming from common geographic regions. In this case, users in Canada were searching for 'custom surfboard', clicking on Tim's ad, but not making a purchase. This makes sense since Tim doesn't ship to Canada. Conversion Optimizer was able to identify this trend and focus efforts on targeting users in the United States.
• Strong broad match queries: Tim is running on the broad match keyword 'surfboard'. Conversion Optimizer is able to see that Tim's ad was also showing for queries such as 'order a custom surfboard' and 'custom made surfboard', both of which performed very well for Tim (low average CPA, high conversion rate). Conversion Optimizer is able to identify this opportunity and make sure Tim's ad showed as often as possible for these two related queries.

Simple bid management

Before installing Conversion Optimizer, Tim chose different bids for each of these keywords, but used the same bid for all the clicks on each keyword. Simple bid management misses out on opportunities to differentiate between clicks.

Multi-dimensional bid management

Now that the Conversion Optimizer is installed, it is able to analyze past performance data and begin to optimize based on many more factors. In Tim's case, two major areas for improvement Conversion Optimizer identifies are: user location and strong performing broad match queries.

• User location: For the term 'custom surfboard', Conversion Optimizer found that some non-converting clicks were coming from common geographic regions. In this case, users in Canada were searching for 'custom surfboard', clicking on Tim's ad, but not making a purchase. This makes sense since Tim doesn't ship to Canada. Conversion Optimizer was able to identify this trend and focus efforts on targeting users in the United States.
• Strong broad match queries: Tim is running on the broad match keyword 'surfboard'. Conversion Optimizer is able to see that Tim's ad was also showing for queries such as 'order a custom surfboard' and 'custom made surfboard', both of which performed very well for Tim (low average CPA, high conversion rate). Conversion Optimizer is able to identify this opportunity and make sure Tim's ad showed as often as possible for these two related queries.

Example: Improving your content campaigns

Candice sells new and vintage movie posters online. She has been using contextual targeting to reach potential customers while they spend time on movie blogs, read online entertainment magazines and chat with fellow movie buffs on cinema discussion boards. The Display Network has brought a lot of sales to her shop, but after looking at her key performance metrics, she thinks there is still room for improvement.

Candice decides to use the Conversion Optimizer. Setting up the feature is quick and easy; she knows that, on average, she’d like to pay $5.00 for a conversion on her site, so she sets this as her Target CPA bid. She then fills in some basic information and then lets Conversion Optimizer do the rest. A few weeks later, Candice checks in on her campaign's performance and is delighted to see that her conversion rate has improved by over 0.5%! How did Conversion Optimizer accomplish this?

In order to improve Candice's content campaign performance, Conversion Optimizer examined the campaign's historical and current performance. Here are three sample websites where Candice's ads appeared on the Display Network:

• Website A: Conversion Optimizer found that, over time, Website A drove conversions at a high cost by sending Candice many clicks that were not translating into conversions. Bid levels for this site were automatically lowered until Candice's ads stopped appearing on this website, thus freeing up budget for higher performing websites.
• Website B: This site is one of Candice's top performers, so Conversion Optimizer will make sure her ads appear there as often as possible, generating even more conversions.
• Website C: Conversion Optimizer found that, across the board, Candice's ads performed very well on sites with themes similar to that of Website C (theme: movie memorabilia). With this information, Candice's ads were shown on even more Display Network sites related to movie memorabilia; this expanded her reach on relevant sites and delivered new conversions to her business.