Are You Using Google’s Conversion Optimizer?
(image from zacharyfox.com)
Google provides many free tools that can be very useful to Internet marketers and webmasters. While I am sure that you are familiar with Google Analytics and Google Website Optimizer, I want to discuss a tool today that you may not be as familiar with as those previous two.
The tool I want to discuss today is Google’s Conversion Optimizer. So, what is the Conversion Optimizer tool all about? It is part of the AdWords program, and is designed to help AdWords advertisers increase their conversion rate while simultaneously decreasing the cost per acquisition.
As you may or may not know, AdWords initially charged on a CPM basis. Over time, they transitioned to a CPC model. While this is still the primary method of bidding through AdWords, Google is beginning their transition to a CPA model, which is where the conversion optimizer comes into play. With the conversion optimizer (which can be used regardless of whether your conversion is having a form completed or securing a purchase), you can bid based on the value of a conversion to your business.
The reason that this tool can be so useful is because it is capable of automatically doing all of the complicated analysis for you. As explained on the Official Google Blog:
“So how does it work? Each and every time someone types in a search query, AdWords runs a new keyword auction. Advertisers who are still bidding on a cost-per-click basis will be using the same bid in many different auctions, so sometimes their bid may be too high or too low. However, for advertisers using Conversion Optimizer, we’ll automatically adjust the bid for each of these auctions so that it can hit the sweet spot more often, helping the advertiser to make more money.”
The post goes on to give an example that shows the intuitive nature of this tool, such as eliminating traffic from outside the US if you don’t ship internationally and learning that an inclusion of the word cheap in a query leads to a higher conversion rate.
Although the majority of AdWords advertisers haven’t transitioned to this tool yet, if you are one who has, please share your experience and the impact it has had on your conversion rate in the comments section below!