AdWords Conversion Optimizer f***ing with me?

[nator]

I'm trying out the conversion optimizer on adwords (search).
Seems like it cuts the traffic that doesnt convert (ie low converting keywords). Ofcourse I'm getting much less traffic (and less leads).

I couldnt really get enough info on how it works. It's not even a part of their learning center. Automated bidding should be able to work in theory (after all, bid management efforts can be turned into an algorithm). However I'm not at all sure it can bring optimal results.

Anyone has experience using the optimizer on search?
You think their algorithm can outdo manual optimization? And if it can, will they allow it to?

 

[nwmnwm]

I attended a webinar on Conversion Optimizer yesterday. Without going into too much detail, I can tell you that it is best used on a campaign where you have a lot of history. Unlike regular bid management, it looks at tons of different factors like time of day, user location, actual search queries, etc.

 

[nator]

thanks, would appreciate a link to the webinar

 

[nvanprooyen]

My personal experience - For the content network, good. For search, bad. Who knows though...it could really vary by niche, account, etc.

 

[aim]

I was on that conference call as well. The Sr. Project Manager for Conversion Optimizer led the Webinar. Interesting stuff how it works.

He was pretty vague about the specifics but the difference between conversion optimizer and regular cpc bids is that cpc bids only look at the keyword relevancy, whereas conversion optimizer looks previous conversions and is more likely to show your ad where conversions have been strong in the past.

Basically it works like this:

Keyword "alpha" converts at 1% for you.
Keyword "beta" converts at 5% for you.

You're bidding $1.00 CPC traditionally, paying for those clicks every time. All Google is looking at here is keyword relevancy.

** Switch to conversion optimizer **

1. Since "alpha" converts so much less for you, Google is going to send you less traffic saving you money.
2. "Beta" is converting very well, so they'll send you more traffic than usual at a lower cost, because the it converts well it must mean its relevant to the user and an overal better experience.

Regarding your specific complaint:

Seems like it cuts the traffic that doesnt convert (ie low converting keywords). Ofcourse I'm getting much less traffic (and less leads).

I don't see what you're complaining about here. Google is cutting traffic that doesn't convert... so you may be seeing lower conversion number, but an overal higher ROI no?

 

[nator]

I don't see what you're complaining about here. Google is cutting traffic that doesn't convert... so you may be seeing lower conversion number, but an overal higher ROI no?

THat wasnt a complaint, it was a statement.
The complaint is that I can't find any facts about how it REALLY works. And the possibility that google don't allow this algorithm to really work on optimal level...

 

[aim]

From http://adwords.google.com/support/bin/answer.py?hl=en&answer=60150:

To calculate the optimal equivalent CPC bid, the Conversion Optimizer first calculates a predicted conversion rate for each auction. The Conversion Optimizer takes many factors into account, including your ad's conversion history, the keyword's broad match query, the user's location, and the conversion rates of Google's search and content partner sites. The feature then generates an ad rank by combining your CPA bid, quality score and predicted conversion rate.

Not sure what more you need to understand. Test it. If it gives you a better ROI, continue using it. If not, don't.