Many advertisers have told us that by using the Conversion Optimizer, they have not only made their campaigns significantly more profitable, but also they save time managing their accounts. Though one question we often hear is, “How does the Conversion Optimizer make my campaign more profitable than I can on my own?”
You probably already vary your bids by keyword and may also use separate bids for the search and content networks. The Conversion Optimizer takes this strategy a step further by automatically adjusting your bids to take into account many additional factors, including: the country the user is browsing from, the specific content network site or search partner site your ad appears on, and the broad match terms a keyword has matched on.
As part of AdWords, the Conversion Optimizer is able to consider all these factors, and then adjust your bids based on the potential value of each click. Clicks vary in value because every click has a different likelihood of converting.
For example, the keyword “flowers” may have a 2% conversion rate while the keyword “roses delivery” may have a 7% conversion rate. That doesn’t mean that you don’t want any clicks on “flowers,” but you probably wouldn’t want to spend as much on that keyword as you might be willing to spend for clicks on “roses delivery.”