1. Google AdWords Conversion Optimizer:
Multi-dimensional Bid Management
PANELIST:
Andrew Silverman, Product Manager, Google

2. Conversion Optimizer Interesting Facts
• Multi-dimensional Bid Management tool which can improve your campaign’s
performance and make it easier to manage to your CPA goals
• Campaigns adopting CO achieve a 21% average increase in conversions and 14%
average decrease in CPA
• No additional charge for AdWords advertisers
• Works on both content and search
• Available to campaigns using AdWords Conversion tracking which have received 30
conversions in the past 30 days
Optimizes your
placement in each Gets you as many Gets you more
ad auction to profitable clicks conversions at
avoid unprofitable as possible lower costs
clicks
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3. Simple vs. Multi-dimensional Bid Management
Multi-dimensional Bid Management
Simple Bid Management
• Varies bids by keyword (only) • Considers many other factors that
indicate the value of a click
• No other factors taken into
(Examples: user location, match
account
quality, user query, content site,
• Examples: manual bid etc.)
management, 3rd party bid
• Optimizes performance in real
management
time based on the specific
characteristics of each auction
• Opportunity to achieve much
better performance
Google Conversion Optimizer
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4. How Simple Bid Management works
I sell customized surfboards online.
How much should I bid on my keywords surfboard and ocean sports?
Keyword: surfboard (broad-match) Keyword: ocean sports (broad-match)
Keyword results Keyword results
conversions
clicks
“good” keyword “bad” keyword
high conversion lower conversion
rates rates
With Simple Bid Management, surfboard is identified as a “good”
keyword and ocean sports as a “bad” keyword. Ocean sports will have
lower bids and most of those clicks will disappear. 4

5. How Multi-dimensional Bid Management
is more effective
Looking deeper than just at the keyword level, there are fine-grained
pockets of good and bad performance
Keyword: surfboard (broad-match) Keyword: ocean sports (broad-match)
Keyword results Keyword results
conversions
clicks
Refinement: I don’t ship Refinement: on certain AdSense
internationally, so international for Search partner sites, these
clicks unlikely to convert. clicks convert very well.
In Multi-dimensional Bid Management, the good parts of both
keywords are taken, therefore: many unprofitable clicks are
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eliminated and less opportunity is missed.

6. Conversion Optimizer knows:
keyword is not the only predictor of conversion rate
Conversion Optimizer considers many other auction factors in
optimization, including
• Broad vs. exact match
Search targeting • Particular broad-match query
• Search partner site
• Content site “topic” Factors
Content targeting • Match quality between ad and content unavailable to
simple bid
• Actual content site
management
• User location
• Browser
User attributes
• Operating system
• Language setting
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7. 10 Important things to know about Conversion Optimizer
It’s easy to try, so try it out. If you choose
The Max CPA bid is similar to the Max
1 CPC bid – the most you want to pay for to turn off the Conversion Optimizer, your
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a conversion campaign will revert to the previous CPC
bids you were using.
Although you are bidding with a CPA, with
the Conversion Optimizer you still pay
2 Use the Conversion Optimizer with
per click. It is like being charged a little existing campaigns. The longer a
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piece of your CPA for each click campaign has used conversion tracking,
the more data the Conversion Optimizer
A Max CPA is not an average or target.
Your average CPA will usually be less than has available.
your bid. (Just as if you bid a Max CPC
3 Change your Max CPA as often as you
and your average CPC is less than this,
like. If you’d like more conversions, raise
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you might bid a Max CPA and get an
your bid. If you’d like a lower average
average CPA below this.)
CPA, lower your bid.
You should start with the recommended
Your average depends on factors outside
bid presented when you first turn on
4 Google's control, so your actual CPA
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Conversion Optimizer. Raise and lower
may sometimes exceed the maximum
your bid once you have some data to
CPA you specify
optimize your performance.
Experiment and find out what works best
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You can set a different Max CPA bid for
5 for you!
each ad group
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8. Resources
Conversion Optimizer website
http://www.google.com/adwords/conversionoptimizer/
Features:
• Conversion Optimizer Video
• Conversion Optimizer Guide
• Product FAQs
• Success stories
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