Part2 Conversion Optimizer

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  • 1. Bidding & Conversions
  • 2. Overview 1. Bid Simulator 2. Conversion Tracking 3. Conversion Optimizer
  • 3. Bid Simulator
  • 4. Do you ever wonder … ? … if I increase my Max CPC bid from $2 to $3, how many more clicks can I expect to get? … how many more impressions can I expect to get? … how much would the clicks costs? … how can I bid more effectively?
  • 5. Bid Simulator Overview What is the Bid Simulator? • A feature of the new AdWords Interface that estimates the click, cost and impression data that ads would have received in the last seven days if advertiser had set different maximum CPC bids • Provides transparency and simplicity with regards to the bidding process 5
  • 6. Bid Simulator | Accessing the tool (step 1) Accessible in the Keywords tab in the Max. CPC column. Sign into your account, and you are ready to begin.
  • 7. Bid Simulator | Accessing the tool (step 2) Click the bid simulator icon in the Max. CPC column next to the bid of any keyword you would like to see data for. You can only view simulations for one keyword at a time
  • 8. Bid Simulator | UI – Scenario 1 Scenario 1: Your keyword receives adequate traffic: shows the estimates of clicks, cost and impressions for several bids Date range of simulation Current bid
  • 9. Bid Simulator | UI – Scenario 2 Scenario 2: Your keyword receives lower traffic: shows the estimates of impressions only Date range of simulation Current bid
  • 10. Bid Simulator | UI – Scenario 3 There are no estimates for a keyword that does not meet any threshold, either because the keyword was recently added or the bid is too low to receive any impressions. Therefore, an icon will not appear next to the keyword Simulations only available for keywords ‘google store’ and ‘usb drive’
  • 11. Bid Simulator | How does it work? Your quality score Your competitors’ bids and their quality scores We know Amount of traffic search network received last week Probability of a click on your ad given its position Google’s auction system The number of impressions for which your ad would have shown We The number of clicks you would have gotten for those estimate impressions The cost of those clicks
  • 12. Bid Simulator | Advantages What are the advantages for the advertiser? • Simplifies bidding and makes it easier, no 3rd Party tool required • Eliminates the need for constant trial and error currently needed to figure out the results of different bids • Adds transparency into AdWords
  • 13. Bid Simulator | Things to note When a new keyword is added or a campaign started, simulations are generated when enough click or impression data Bid simulator does not simulate conversions or predict future results Data gets refreshed once a day Simulations are for Google.com and search partners only Bid changes do not hinder our ability to simulate For broad match keywords, the # of impressions and clicks can change dramatically with each bid. 13
  • 14. Conversion Tracking
  • 15. Which clicks are most valuable? • Without conversion data: Keyword Impressions Clicks Average CPC Cost “Roses” 1,000 50 $1.00 $50 “Flowers” 2,000 30 $1.00 $30 Conversion data tells you: Keyword Conversions Cvr % Cost / conversion Profit / conversion (@ (CPA) $7 margin) “Roses” 10 20% $5.00 $2 “Flowers” 3 10% $10.00 $-3 CPC bid for flowers is too high!
  • 16. Conversion Tracking Track ROI and make smarter decisions, for free • Correlate ad clicks to custom conversion metrics • Easily set up tracking for sales, sign-ups, leads, and page-views • Measure conversion value of campaigns, ad groups, and/or keywords and optimize bids accordingly • Track Google and non-Google ads
  • 17. Conversion Tracking • Track ROI and make smarter decisions, for free – Correlate ad clicks to custom conversion metrics – Easily set up tracking for sales, sign-ups, leads, and page-views – Measure conversion value and optimize bids accordingly – Track Google and non-Google ads User Clicks Google Cookies Advertiser Account User Purchases on an Ad the User Updated
  • 18. Implementation • Go to Tools/Conversion Tracking • Set-up wizard helps you choose conversion type, customize text image, and generate code. Five conversion types
  • 19. Implementation • Choose Language & Security • AdWords automatically generates code • Webmaster can copy & paste code from AdWords onto Conversion Pages, then publish onto the live site • With a live campaign and live code, Code conversion data automatically populates your account Language Selection
  • 20. Conversion Tracking Facts • Cookies last 30 days • There are 5 conversion types: sale, lead, sign-up, page view & other • New code is needed for each conversion type • It only tracks conversions through AdWords traffic
  • 21. Conversion Optimizer Google Confidential and Proprietary
  • 22. Conversion Tracking Free tool helps you track ROI and make smarter online advertising decisions •Easy set up by placing a small snippet of javascript into your confirmation page •Measure the conversion value of your campaigns, ad groups and keywords •Use the conversion data to make better bid decisions Makes bidding easier, but manual work (CPC) still required
  • 23. How Conversion Optimizer works 1 You provide a Max CPA bid for each ad group 2 Conversion Optimizer considers many factors… user location query performance …in order to calculate a predicted conversion rate for partner sites each auction (based on more . . . historical data). . . . Then finds the optimal equivalent CPC bid for your ad each time it's 3 eligible to appear 4 Max CPA is combined with the Predicted Conversion Rate and Quality Score to produce Ad Rank
  • 24. Conv. Optimizer: free AdWords feature for managing CPA bids • Specify a Max CPA for each ad group • The Conversion Optimizer automatically finds optimal CPC bids for each auction • Uses historical information about your campaign • You still pay per click, but you no longer have to manually adjust your bids to reach your CPA goals Set a Max CPA bid for an AdGroup
  • 25. Eligibility • Advertisers who have Conversion Tracking enabled and 10+ conversions in the last 30 days for eligible campaigns. • Stable conversion rate with no major recent changes (such as those caused by redefinition of conversion event or moving of conversion tracking code)
  • 26. Conversion Optimizer Benefits Save time. Set your max CPA, and Conversion should I WHY use it? Optimizer will automatically adjust your CPC bids for each auction Save money. Conversion Optimizer uses different bids in every ad auction, allowing you to spend more money in situations where you’re likely to get conversions Free. Third-party bid management tools are expensive! Access lots of inventory. Allows you to advertise on both the search and content networks Easy to try! If you turn off Conversion Optimizer, previous CPC bids automatically restored
  • 27. Conversion Optimizer Interesting Facts • Multi-dimensional Bid Management tool which can improve your campaign’s performance • Works on both content and search • Available to campaigns using AdWords Conversion tracking which have received 10 conversions in the past 30 days • No additional charge for AdWords advertisers • Campaigns adopting CO achieve a 20.7% increase in conversions and 14.1% decrease in CPA* Optimizes your placement in each Gets you as many Gets you more ad auction to profitable clicks conversions at avoid unprofitable as possible lower costs clicks * Source: detailed analysis in Feb 2009 completed by Paul Liu, a Senior Economist on at Google. Campaigns who have adopted Conversion Optimizer are compared to a control set of comparable campaigns
  • 28. Simple vs. Multi-dimensional Bid Management Simple Bid Management Multi-dimensional Bid Management • Varies bids by keyword (only) • Considers many other factors that indicate the value of a click • No other factors taken into (Examples: user location, match account quality, user query, content site, etc.) • Examples: manual bid • Optimizes performance in real time management, 3rd party bid based on the specific characteristics management of each auction • Opportunity to achieve much better performance Google Conversion Optimizer
  • 29. Keyword is not the only predictor of conversion rate Conversion Optimizer considers many other auction factors in optimization, including: • Broad vs. exact match Search targeting • Particular broad-match query • Search partner site • Content site “topic” Factors Content targeting • Match quality between ad and content unavailable to • Actual content site simple bid management • User location • Browser User attributes • Operating system • Language setting
  • 30. 10 Important things to know about the Max CPA bid The Max CPA bid is similar to the Max Don’t set too low of a bid, particularly 1 CPC bid – the most you want to pay for a conversion 6 when you first turn on Conversion Optimizer. A very low bid is likely to Although you are bidding with a CPA, with reduce traffic. the Conversion Optimizer you still pay 2 per click. It is like being charged a little 7 Monitor and tweak your Max CPA bids as you would any other bid, to get the piece of your CPA for each click most profit from your campaign. A Max CPA is not an average or target. Change your Max CPA as often as you Your average CPA will usually be less like. If you’d like more conversions, raise 3 than your bid. (Just as if you bid a Max CPC and your average CPC is less than 8 your bid. If you’d like a lower average this, you might bid a Max CPA and get an CPA, lower your bid. average CPA below this.) Your average depends on factors outside Google's control, so your actual CPA You should start with the recommended bid presented when you first turn on 9 may sometimes exceed the maximum 4 Conversion Optimizer. Raise and lower your bid once you have some data to CPA you specify Experiment and find out what works best optimize your performance. 10 for you! You can set a different Max CPA bid for 5 each ad group
  • 31. 10 Tips for Conversion Optimizer success Start with the recommended CPA bid Don’t make huge changes to a 1 and modify your bids often to find your “sweet spot”. 6 campaign while running Conversion Optimizer. (Example: deleting all ad groups and replacing with new ones. It’s easy to try, so try it out. If you choose to turn off the Conversion Optimizer, your Do make small changes to your 2 campaign will revert to the previous CPC campaign that fit your business needs. bids you were using. 7 (Examples: adding/deleting keywords, changing creative, changing landing Use the Conversion Optimizer with page.) existing campaigns. The longer a 3 campaign has used conversion tracking, the more data the Conversion Optimizer Don’t remove your conversion tracking code from your website or move it to a has available. 8 different location while running Conversion Optimizer. If you don't have a campaign yet, but want to try Conversion Optimizer, create a new Raise your Max CPA bid if you want to CPC campaign and let it run for a few increase traffic and conversions. Lower 4 weeks with conversion tracking. Then turn CO on, but keep in mind performance 9 your Max CPA bid if you want to lower your average CPA. Traffic will likely will improve over time as CO gets more decrease. data. Compare your CPA and # conversions Keep in mind that changes in ad before and after using Conversion performance are natural, and you may 10 Optimizer so you know how much 5 need to use the Conversion Optimizer for some time to get an accurate improvement it made on your campaign. understanding of its effects.
  • 32. Enabling Conversion Optimizer: Step 1 Select the campaign you want to enable for and click on “Edit Settings”’
  • 33. Enabling Conversion Optimizer: Step 2 Under Bidding & Budgeting, click on “Advanced Options” link
  • 34. Enabling Conversion Optimizer: Step 3 Select the option “Focus on Conversion” to use Conversion Optimizer and click “Save”’
  • 35. Use recommended bid or customize your bid: Step 4 You can start with the recommended bid or create a custom bid It can be good idea to start with the recommended bid and then tweak the bid up and down to find the ideal spot for you
  • 36. Conversion Optimizer Tips • How to best structure campaigns? • Each Conversion Optimizer campaign should have products and services that are related • Don’t create excessive number of AdGroups • Don't create new campaigns • How do I get more conversions? • Turn on Content Network • Add more keywords • Increase CPA bid • Any tweaks to increase CTR or conversion rate, including changing the ad creative and landing pages
  • 37. Only works with Conversion Tracking Question Our company doesn’t use AdWords Conversion Tracking. Can I use Conversion Optimizer with Google Analytics or a third-party product? Response Conversion Optimizer requires AdWords Conversion Tracking. Keep in mind that you can use AdWords Conversion Tracking along with other conversion tracking systems. For instance, many of our customers have Google Analytics and AdWords Conversion Tracking tags on their conversion pages.
  • 38. Conversion Optimizer: Increases profit and saves time •Increases your profits Multi-dimensional Bid Management for AdWords better matches ads with customers Easy to use Improves AdWords’ ease of use with less time spent managing bids No additional charge for AdWords advertisers No extra fees or new interfaces to learn
  • 39. Resources •Conversion Optimizer website http://www.google.com/adwords/conversionoptimizer/ •Conversion Optimizer video http://www.youtube.com/watch?v=ynMJyem7lSM •Product FAQs http://adwords.google.com/support/bin/topic.py?topic=12045 URL to complicated? Just search for “Conversion Optimizer” on Google or YouTube
  • 40. Q&A