What is Conversion Optimizer?

by | Featured Posts

bri--blog--018In my opinion, the Google documentation about Conversion Optimizer is confusing. Whenever you try to research what it is, all you get are articles about CPA bidding. Conversion Optimizer is presented as if it’s a standalone tool. And then it’s explained as if it’s simply one of several standard bidding options.

So let’s clear this up. Conversion Optimizer is the same thing as CPA bidding. It’s simply a name given to the functionality that allows for CPA bidding– so the terms Conversion Optimizer and CPA bidding really are synonymous.

The acronym CPA, stands for “cost per acquisition.” Although sometimes, it is referred to as “cost per action.” But no matter which name you prefer, the “action” or “acquisition” part refers to a particular action that someone could take on your website after clicking an AdWords ad. So, the term “conversion’, would really be applicable as well.

More basic bidding methods in AdWords include:.

  • CPC bidding—which is “cost per click” bidding.
  • And CPM bidding— which is “cost per 1000 impressions” bidding.

With CPC and CPM bidding, you’re able to precisely control your own bids based on how much you’re willing to pay per click, or per thousand impressions.

With CPA bidding, instead of setting bids based on cost per click, you simply state the amount you would like to pay per conversion from your AdWords ads. For example, after running a campaign for a while with conversion tracking, you might find that you acquire one conversion for every $25 in clicks that you spend. By turning over your click bidding to Google, you might be able to get more conversions, and at a lower cost.

So you simply set a bid that you’re willing to pay for a conversion, and let AdWords take over from there. Using its massive repository of data, AdWords will intelligently decide when to display your ad, and how much to bid in the auction.

Barry--BW Profile Photo--qual. 80%Hello. My name is Barry, and I love Google AdWords! Would you like to connect with me? If so, send me an email at this address:
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