The Conversion Optimizer
Game On
Webgamic uses the Google Conversion Optimizer to save time and increase conversions by 200%.
Based in Leiden, The Netherlands, Webgamic B.V. develops and manages a variety of popular browser-based games, including Travian, Kapi-regnum, and Footballcup and is developing a new game called Firmfootball. Webgamic's client base has grown by 300 percent in 2007, to 90,000 customers. The company targets The Netherlands, Belgium, Sweden, Finland, Denmark, and Norway markets, and plans to expand to the rest of Europe and the United States.
Webgamic began using Google AdWords in 2006 to promote games on its site. From the start, CEO Moritz Daan was pleased with the results of the company's AdWords campaigns. But as the head of the company and the main marketer, he often found himself with too many things to do, and not enough time to do them.
Now, I can take some days off from worrying about my AdWords campaigns.
Then Moritz found out about the Conversion Optimizer, a new AdWords bid management feature. In 2007, Webgamic began using the Conversion Optimizer to manage its AdWords advertising. The company still pays for ads on a price-per-click (CPC) basis, but instead of setting CPC bids for all its keywords manually, it uses the Conversion Optimizer to set a single maximum cost-per-acquisition (CPA) bid for each of its ad groups. The Conversion Optimizer then manages Webgamic's CPC bids, making adjustments based on the likelihood that a conversion will result from each ad auction. "Now, I can take some days off from worrying about my AdWords campaigns," says Moritz.
In addition to time savings, Webgamic has seen dramatic improvements in AdWords campaign performance. "With the Conversion Optimizer, we managed to get 600-plus conversions per day, instead of the usual 200," explains Moritz. "Also, I thought it wasn't possible to get below €0.60 CPA, but Conversion Optimizer managed to cut our costs down to €0.25 per conversion." The company has seen click-through rates increase 43 percent, and overall acquisition costs decrease 63 percent.
The Conversion Optimizer has helped Webgamic achieve improved results by continually adjusting the company's CPC bids based on the predicted conversion rate for its ads. For instance, after figuring out that Webgamic's conversion rates are 50 percent higher when its ads run on Gamenext! (www.gamenext.nl), the Conversion Optimizer increased its CPC bids to run more ads on Gamenext! and get more conversions while meeting its overall CPA goals. "From now on, we'll definitely be using the Conversion Optimizer for all of our AdWords campaigns," says Mortiz. "There's no reason not to."
About Conversion Optimizer
The Conversion Optimizer is an AdWords feature that manages your advertising costs around specific conversion goals. Specify a maximum cost-per-acquisition (CPA) bid and manages your CPC bids for you, making adjustments based on the likelihood of a conversion in each ad auction. In addition to saving time in monitoring and managing your CPC bids, Conversion Optimizer advertisers may see better performance than manual bidding alone because it factors in different conversion rates such as search query, user location, and conversion history of particular sites for each CPC bid. For more information about Conversion Optimizer, visit http://adwords.google.com/support/bin/answer.py?answer=60150.
About Google AdWords
Google AdWords is currently used by thousands of businesses worldwide to gain new customers in a cost-effective way. AdWords use keywords to precisely target ad delivery to web users seeking information about a particular product or service. The program is based on cost-per-click (CPC) pricing, so advertisers only pay when an ad is clicked on. Advertisers can take advantage of an extremely broad distribution network, and choose the level of support and spending appropriate for their business. For more information on launching your own campaign or getting expert help, visit http://adwords.google.com.