The Conversion Optimizer uses data from AdWords Conversion Tracking to learn when and where your ads are likely to get conversions.
For example, consider the following data about clicks received in Campaign 1. Note that each row represents a click.
Campaign |
Ad group |
Keyword |
Match type |
User search query |
User location |
Conversion? |
1 |
1 |
Flowers |
Exact |
Flowers |
U.S. |
Yes |
1 |
1 |
Flowers |
Broad |
Florists |
U.S. |
Yes |
1 |
1 |
Flowers |
Broad |
Roses |
U.S. |
No |
1 |
1 |
Flowers |
Exact |
Flowers |
Canada |
No |
1 |
2 |
Flower delivery |
Exact |
Flower delivery |
U.S. |
Yes |
1 |
2 |
Roses delivery |
Exact |
Roses delivery |
U.S. |
Yes |
After observing these clicks, the Conversion Optimizer might conclude:
- Conversions are more likely to occur when the ad is shown to users in the United States than when it's shown to users in Canada.
- Broad matches on searches for 'Roses' don't convert well.
- Broad matches on searches for 'Florists' do convert well.
Ad group 2 has a better conversion rate than Ad group 1. (Both clicks converted, whereas half the clicks of the first ad group converted.)
Additional considerations
Of course, the Conversion Optimizer really observes a much larger number of clicks and conversions. Also, its conclusions must meet a test of statistical significance. If there isn't enough data available, the Conversion Optimizer extrapolates based on what it already knows. For example, if a new keyword is added to an ad group, the Conversion Optimizer will initially treat that keyword as if it had the same conversion rate as other keywords in the ad group.
The Conversion Optimizer looks at all AdWords Conversion Tracking data, but it weighs recent data more heavily. For this reason, the Conversion Optimizer will work better with existing campaigns that have used AdWords Conversion Tracking for some time.
In addition to click data, the Conversion Optimizer uses other information to help predict when a conversion is likely to occur. For example, it considers where in the Google Content or Search Networks the ad is appearing and the type of content on the website.
Once the Conversion Optimizer calculates a predicted conversion rate for a particular ad impression, it multiplies the predicted conversion rate by the maximum CPA bid to come up with an equivalent maximum CPC bid.
