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Enhance Campaign Leads Through Conversion Optimizer

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Google AdWords is a bid manipulation tool that manages bids at the keyword-level with the goal of trying to get as many conversions at or below an advertiser-specified Cost-Per-Conversion (also known as a Cost per Action, or simply, CPA). Adwords provides an automated tool called ‘Conversion Optimizer’ that can help achieve the goal of conversion generation at a profitable cost per acquisition.

Google Conversion Types:

There are two kinds of conversion :

  • Converted Clicks: These are the number of unique clicks that converted within a 30-day period. If primary tracking goal is the number of unique conversions, such as in lead generation accounts, then set the Conversion Optimizer to focus on optimizing to this metric.
  • Conversions: This metric is a total of all conversions. For instance, a user comes to the site and makes multiple purchases. Google will track each one of those conversions separately. Therefore, it is possible for one unique user to be responsible for multiple conversions. Optimize to this metric if total conversions are more important to the business (often times in ecommerce account).

Conversion Optimizer and Its Working?

AdWords Conversion Optimizer is a tool which helps in acquiring the most conversions possible at a defined target CPA. Instead of manually manipulating the bids and generating conversions, conversion optimizer automatically adjusts bids to generate conversions within the defined CPA boundary.

Conversion Optimizer generates the conversions within the defined boundary by analysing the campaign history and performing a predictive analysis of which all auctions either search or display, are most likely to convert. Bids are automatically adjusted based on whether AdWords tracks a specific auction will convert or not. Manual bidding only reduces CPC, but doesn’t go through the account where auctions are highly or less likely to convert.

There are two types of CPA targeting in conversion optimizer:

Max CPA: The maximum an advertiser is willing to pay for a conversion. Essentially when the statement is ‘I won’t pay any more than ‘x’ for a conversion.

Target CPA: It’s a more flexible bidding option where conversion optimizer targets both high and less expensive auctions and reach at an average CPA target. The benefit of this option is that the system is opened for a wider pool of auctions.

Conversion Optimizer chooses a new bid for each auction, with the goal to decrease the CPA by spending money on search queries and sites where ads are most likely to convert. It refines by the user’s operating system, location too and more, helps in avoiding unprofitable clicks.

Campaigns requires minimum 15 conversions within a 30-day period to be eligible for Conversion Optimizer. AdWords needs enough history to do its predictive analysis properly. Although Google uses complete conversion history, but the most recent history will have more weight and relied upon the most when determining the auctions to enter.

Enabling Conversion Optimizer on Your Account

  1. Choose a Campaign That’s Eligible for Conversion Optimizer: Choose a campaign from all campaigns which see a note in AdWords campaigns dashboard like this following screenshot:snapshot
  2. Go into Settings and Do the Few Adjustments: Firstly set mobile bids are set to zero for the eligible campaign. Within the ad scheduling, switch it to all days and all hours for that campaign. Then, go to the bidding and budget section. So choose edit, click on: “focus on conversions.” Go into the advanced options of the section next (look at the screenshot below).  Usually we choose the “target CPA” option – this is the average amount we want to pay per conversion. In the screenshot below, the option to set the target CPA is not visible, because that have already implemented it for this account. But, Google will offer a suggested target in this step. snapshot-1

Previously, we have gone with what Google recommends here for target CPA, but we will want to sanity-check the number before set it. Look at the past couple months’ worth of data and see what is the average CPA was for that campaign.

By completing this step, Conversion Optimizer is enabled.

  1. Check Out The Results: Look at the snapshot of results for one campaign where Google set the target CPA at $49.00. Here, it can be seen that the CPA has come in at around $42 for this particular campaign. Conversion Optimizer has done the job, and well, this is less than that we have paid in the past for conversions in this particular PPC campaign.snapshot-2

At all, Google AdWords Conversion Optimizer is a simple step that can drive the cost per acquisition (CPA) down and that’s too without much hassle.

Limitation of Conversion Optimizer

There is no doubt that Conversion Optimizer is a very effective tool to increase the leads in campaign. But like other tools, it too has its limitations. Some of its limitations are as follows:

  • No keyword level bid: Conversion Optimizer are based on ad group level CPA bids, it takes away the managing the bid – whether CPC or CPA – at the keyword level. Conversion Optimizer forces to set a Max or Target CPA at the ad group level and hope that it is enough sufficient for all keywords in an ad group.
  • Does not work well with enhanced campaign: Conversion Optimizer persists completely outside of the enhancement of campaign. Mobile, geographic or day parting bid multipliers are some settings which are included in the Conversion Optimizer algorithm, and makes it effective.
  • It has a shelf life: Conversion Optimizer needs fresh conversion data from your keywords in order to work at optimal levels. Because of this require for the fresh data, campaigns running on Conversion Optimizer can see performance dip over time. The common solution to is to “prime the pump.” In layman’s terms: turn Conversion Optimizer off for some time and run on manual CPC bids to let new, fresh data accumulate. And then resume using Conversion Optimizer.
  • New keywords are failed in conversion optimizer: When a new keyword inserted with ZERO conversion history into a campaign running Conversion Optimizer, it gets failure. It never receives enough impressions and clicks to succeed. Theoretically, this could force to create new CPC campaigns to launch new keywords. Or force into a cycle of shutting down Conversion Optimizer just to launch a set of long tail keywords in search query report.
  • CPCs Can Inflate: One of the most interesting things about Conversion Optimizer is the potential for CPCs to inflate. As the algorithm adjusts the bids to get ad in the optimal position for conversion, it gives the end result is a higher CPC. This is basically not a problem. If CPCs inflate, but reaching the target CPA and target volume of conversions then it’s fine. Cheap clicks aren’t really the end goal, cheap conversions are. However, this become a challenge with campaigns where the daily budget has a relatively low cap. Again if CPA and conversion volume are fine then this is not exactly a bad thing.

Finally, Conversion Optimizer produces effective results and is worth testing but needs regular monitoring and tweaking as must. A ‘set and forget’ approach is not a good practice and it will ultimately lead to poor results.

Image Credits: Google

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