The document provides an overview of bidding and conversions tools in Google AdWords, including a bid simulator, conversion tracking, and conversion optimizer. The bid simulator allows advertisers to estimate how clicks, costs, and impressions would change with different maximum cost-per-click bids. Conversion tracking enables advertisers to measure the ROI of campaigns by correlating ad clicks to sales and other conversions. The conversion optimizer is a free tool that uses conversion data to automatically optimize cost-per-acquisition bids to maximize conversions and reduce costs.

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