How Does Google AdWords Conversion Optimiser Work

Mitch Mizerak
June 26, 2017

Thinking about doing some Google Advertising Online through AdWords? If you're currently tracking conversions, you should consider looking at Conversion Optimiser.

AdWords Conversion Optimiser is a bidding adjustment setting in AdWords, that user your historical conversion data to help get you more conversions.

Once Google knows what keywords are generating conversions on your website, they then use this historical data to calculate the best keywords and CPC (Cost Per Click), which will result in more conversions. By enabling this feature, you can set a CPA (Cost per acquisition), which tells Google what your max or average CPA should be, to achieve a conversion. Often this leads to more conversions but higher CPC, higher ad positions and slightly higher CPA price. But of course, this will depend on your unique situation.

Why can't I use Conversion Optimiser?

If you see Conversion Optimiser not available in the back end of your campaign, this is because you have not met the requirements to enable Conversion Optimiser in your AdWords account.

The following conditions must be fulfilled to activate conversion optimiser:

  • Your AdWords campaign must be using conversion tracking or importing conversion directly from Analytics
  • Your campaign must have received 15 conversions or more in the last 30 days.
  • Lastly, Google looks to see that these conversions have been coming in at a similar rate for the past few days.

Thing to consider before turning on Conversion Optimiser

Before taking the plunge and activating Google AdWords Conversion Optimiser, there are a few things first to consider.

Because Google is using data from past conversion history to help decide on what keywords to bid more on, it is critical that the conversions from the past month consistently match up to previous months. If you just happen to have an exceptional month or your data is seasonal this can cause Conversion Optimiser to place higher bids on keywords that are very unlikely to convert.

Lastly make sure you are tracking all your conversions including phone tracking, as this is often missed and can cost you valuable conversions.

Quick guide on how to enable Conversion Optimiser Setting

Most likely if you have met the requirement to allow Conversion Optimiser, you would have seen a note in your campaign.

  1. To activate this setting click on the campaign, you would like to use
  2. Make sure all mobile bids are set to zero
  3. Change ad scheduling to all days and all hours
  4. Click on all settings
  5. Scroll down to "Bid strategy" and click edit
  6. Select Focus on conversions (Conversion Optimiser)
  7. We usually then select "Target CPA."
  8. You should see a suggested target CPA - This is your average Cost per acquisition you are willing to pay. If you're not sure about your CPA, you can always check your last couple of months average to get a better idea.
  9. That's it, you're done. Conversion Optimiser is now active.

Google AdWords Conversion Optimiser Now also Supports Mobile Call Extensions. In conclusion, Google Conversion Optimiser has some great benefits and if used with enough reliable data can increase a significant number of conversions and save you lots of money on under-performing keywords.

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Mitch Mizerak

I am extremely focused and have worked in large and small agencies where I have been influenced by some amazing marketers. I am passionate about Users Experience, Machine Learning, Artificial Intelligence and learning new online marketing techniques and strategies.