The Conversion Optimiser is an AdWords feature that uses your AdWords Conversion Tracking data to get you more conversions at a lower cost. It optimises your placement in each ad auction to avoid unprofitable clicks and gets you as many profitable clicks as possible.
How it works
With the Conversion Optimiser, you bid using a maximum CPA, which is the most that you're willing to pay for each conversion (such as a purchase or sign-up). Using historical information about your campaign, the Conversion Optimiser automatically finds the optimal equivalent cost per click (CPC) bid for your ad each time it's eligible to appear. You still pay per click, but you no longer need to adjust your bids manually to reach your CPA goals and can benefit from improved ROI.
To calculate the optimal equivalent CPC bid, the Conversion Optimiser first calculates a predicted conversion rate for each auction. The Conversion Optimiser takes many factors into account, including your ad's conversion history, the keyword's broad match query, the user's location as well as the conversion rates of Google's search and content partner sites. The feature then generates an ad rank by combining your CPA bid, quality score and predicted conversion rate.
Improving your performance
Many advertisers using Conversion Optimiser have achieved double-digit percentage increases in conversions, while paying the same price or less for each conversion.
Requirements
To begin using the Conversion Optimiser, you must have AdWords Conversion tracking enabled, and your campaign must have received at least 15 conversions in the last 30 days. Also, the campaign must have been receiving conversions at a similar rate for at least a few days. We recommend you run conversion tracking for at least two weeks before trying the conversion optimiser no matter what your volume of conversions is (more if you don't have a high volume of conversions).
Learn how to enable Conversion Optimiser.An important note
Your actual CPA depends on factors outside of Google's control, so it may exceed the maximum CPA that you specify. The Conversion Optimiser uses historical conversion data to predict the likelihood that your ads will be converted. However, your actual conversion rate can be affected by changes to your website and ads or external factors such as increased competition. If your actual conversion rate turns out to be lower than the predicted conversion rate, your actual CPA may exceed your maximum CPA bid.
