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 |
Let's say Tim sells custom surfboards online.
Over the past year, Tim has been excited to see how many sales Google AdWords has driven to his business. During that time, he used both the Search and Content Networks to bring qualified traffic to his site. Now that Tim had a solid account foundation set, he is looking for ways to improve performance. After a little research, he decides that Google's Conversion Optimizer is the best way to improve campaign performance while saving him time. Having successfully activated the Conversion Optimizer feature, Tim allows several days to pass before analyzing performance and making adjustments. When he finally checks in on his campaigns' performance, he is happy to see his average CPA had gone down by almost 5%. However, Tim remembers reading that it was a good practice to test out several max CPA levels, in order to find the level that maximizes profit. He decides to experiment by raising his max CPA by $10, which leads to several more conversions at almost the same average CPA.
Here are two broad match keywords from Tim's account:
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 Bidding
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.
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 Content 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 starts with the recommended maximum CPA bid, which helps ensure a smooth transition. 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 her average CPA has dropped by several dollars and her conversion rate 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 Content Network: