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Google AdWords Conversion Optimizer: Boon or Bane?

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By now, many of us will have taken advantage of the Conversion Optimizer feature from Google AdWords. The question to ask is whether it is really worth setting up Conversion Optimizer on your campaign. The Conversion Optimizer feature can be applied to your campaigns only if you have had more than 15 conversions in the last 30 days, and it uses historical data for the recommended bid.

Conversion Optimizer provides you with a recommended bid which is usually far higher than the current conversion value of your campaign. As per Google, on average, campaigns adopting Conversion Optimizer achieve a 21% increase in conversions, while decreasing their CPA by 14%, which is true for large advertisers. However, I believe that small advertisers might not get a ROI when using this feature. I’ve tested Conversion Optimizer on many of our clients and found that it’s not always a win-win situation. I have performed the feature on many accounts and found that costs decreased for large scale businesses. However, for small scale businesses the case was reversed and as a result of the experiment their CPA actually increased.

We believe that a lot of thought should be given to campaigns which are already running great with a low CPA, high CTR and conversions. You shouldn’t just implement Conversion Optimizer just for the sake of having it on campaigns. There are many ways to optimise your account so don’t just stick with one feature. There are many other free tools available that can help you a lot with analysing your account performance.

Adil Jain
PPC Account Manager


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