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Google Adwords has just announced that it is lowering the threshold for using conversion optimizer from 30 to 15 conversions a month. This will open up the system to a broader range of advertisers that were previously only generating 15 to 30 conversions in a 30 day period from their AdWords activity.

Considering that the original threshold was previously 300 conversions in 30 days, this reflects a significant shift and one which I imagine will be quite popular amongst more CPA focused advertisers.

For those that are not familiar with conversion optimizer, it is basically a free automated bid management system that adjusts your bids automatically based on a CPA model, which reflects the amount you are prepared to pay per conversion. These conversions can be tracked through either AdWords Conversion Tracking or Google Analytics Goals.

Does Conversion Optimizer Actually Work?

The success of conversion optimizer depends on a number of factors including campaign structure, market competitiveness and of course the amount you are willing to pay per conversion, which will obviously dictate the level of exposure and the volumes of traffic that your campaigns will receive.

I recently read some interesting analysis on the Google Adwords Blog of campaigns that have used conversion optimizer experiencing a 21% increase in conversions and a 14% decrease in the CPA, which sounds a pretty convincing argument to me!

Add to this the fact that PRWeb have described the results they received from conversion optimizer as “phenomenal”, due to the overall conversion rate increasing by 76.5% and the CPA reducing by 12.5%, and I’m sure you’ll agree that these are extremely impressive statistics.

It really depends on your campaign objectives as to whether conversion optimizer is right for you, but for advertisers who are extremely CPA focused and know exactly what their acceptable CPA’s are; it can be a low risk decision to make.

How To Use Conversion Optimizer?

To use conversion optimizer, you need to first sign into Google AdWords and install conversion tracking.

To enable conversion optimizer, click edit campaign settings, find the networks and bidding section and click on change bidding strategy.

Then select the radio button for conversion optimizer and click save

You then have the opportunity to use the recommended Google CPA level or to select a custom value that better fits in with your overall PPC objectives.

The next step is to closely monitor the impact this has on your campaign performance to make sure it has the desired effect.  Conversion optimizer won’t work for everyone but we feel that a trial maybe warranted dependant upon the market and campaign conditions. With plenty of human interpretation I see no reason not to test conversion optimizer and would love to hear your experiences.

Happy Trialing