The Conversion Optimizer

How It Works

People ask us, "How does the Conversion Optimizer get better campaign results?" Here's how it works:

The Conversion Optimizer automates the CPC bid management process. Normally, you might spend time monitoring and adjusting your bids in order to get more conversions for a lower cost. The Conversion Optimizer does it automatically, making adjustments based on the likelihood of a conversion in each ad auction.

To determine your CPC bid, the Conversion Optimizer predicts a conversion rate for your ads every time they're eligible to appear. This prediction is based on various factors. For example, here are some of the factors that affect the conversion rate on Kim's custom shirt website:

• The search query.
  Kim's conversion rate is higher when users search for custom shirts than when they search for shirts.
• The location of the user.
  Her conversion rate is highest when her ad shows in the United States.
• The conversion history of particular sites.
  When her ad shows on certain types of content sites in the Google Network, Kim is more likely to get conversions.

Kim doesn't have access to these details, but they directly affect her conversion rate and costs. By considering these factors every time her ads are eligible to appear, the Conversion Optimizer can adjust her bids based on when she's likely to get conversions. It uses the optimal CPC bid for her ad in each auction, thereby working to keep her average cost per conversion below her CPA bid.

Using real-time performance data allows the Conversion Optimizer to adjust Kim's bids for better performance than she'd get with manual bidding alone. Also, because the Conversion Optimizer chooses a new CPC bid for each auction, Kim only spends money on the sites and search queries where her ads are likely to get conversions.