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What is the Conversion Optimizer?
The Conversion Optimizer (beta) is an AdWords feature that manages your advertising costs around specific conversion goals.
Suppose you know how much you’re willing to pay for a conversion, and you know that your ads get better conversion rates on certain days of the week. Normally, you’d spend time monitoring and adjusting your cost-per-click (CPC) bids in order to get more conversions for a lower cost.
With the Conversion Optimizer, this process is automated. You still pay per click, but instead of setting CPC bids, you simply specify a maximum cost-per-acquisition (CPA) bid for each ad group. The Conversion Optimizer manages your CPC bids for you, making adjustments and showing your ads only when you’re likely to get conversions.
To determine when to show your ads, the Conversion Optimizer predicts a conversion rate for your ads every time they’re eligible to appear. This prediction is based on various factors. For example, here are some of the factors that affect the conversion rate on Kim’s custom shirt website:
The search query. Kim’s conversion rate is higher when users search for custom shirts than when they search for shirts.
The location of the user. Her conversion rate is highest when her ad shows in New York.
The conversion history of particular sites. When her ad shows on certain types of content sites in the Google Network, Kim is more likely to get conversions. Full Article.