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Conversion Optimizer CPA Target Bid is Higher than my Daily Budget.

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# 1
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I've recently turned on Conversion Optimizer for one of my campaigns. The recommended CPA target bid was $116.  My issue is that the campaigns daily budget is $40 per day. This high target price may be due to the fact that my company temporarily raised it's campaign budget to about $120/day for the last two months. We've since lowered the budget to $40/day but I am now allowed to use conversion optimizer, so I've turned it on.

 

I initially set the CPA Target bid to $40. I figure at this rate I would hope to expect one conversion per day. I admit that I'm a bit anxious with results but I wan't to make sure I am taking the right approach to this. I've only had the conversion optimizer turned on for one day. I'm worried that setting the target bid so much lower than Google's recommended target bid will cause me to lose conversion opportunities. If I raise the CPA Target bid to $116 I should still remain under the $40/day budget, correct? I would just expect to see a conversion every third day?

 

Thanks in advance for any help!

 

Nick

2 Expert replyverified_user

Re: Conversion Optimizer CPA Target Bid is Higher than my Daily Budget

Community Manager
# 2
Community Manager

Hi NZgorski,

 

First of all, you can be sure that your daily budget will control your spend. If you have set your daily budget to $40/day, this is what you should spend (but please familiarise yourself with overdelivery).

 

Conversion Optimiser is a great feature for mature accounts who are receiving lots of conversions. The recommended requirements for conversion optimiser are:

 

If you are new to collecting conversion data, but wish to give it a bit of a boost, I'd recommend using Enhanced CPC. ECPC is a bidding feature that looks for ad auctions that are more likely to lead to sales for you, and then raises your max CPC bid up to 30 percent to compete harder for those clicks. When it sees auctions that don't look promising, it lowers your bid. That way you can get more sales and conversions out of the ad dollars you spend.

 

Kathleen

Re: Conversion Optimizer CPA Target Bid is Higher than my Daily Budget

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# 3
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Thanks for the helpful response Kathleen.

Since we'd increased our budget for the months of May and June we were spending about $120/day on this campaign. That led to a huge boost in conversions qualifying us for Conversion Optimizer.

We have since reduced the budget to $40/day (not because of performance but for other budgetary reasons) but I am always working to increase conversions. Since we became eligible for the Conversion Optimizer I figured why not give it a go since getting more conversions is my ultimate goal.

What I'm wondering is since I've adjusted my CPA Target bid about 3 times lower than what Google suggested my CPA Target bid to be, will this most likely end up decreasing my conversions?
Marked as Best Answer.
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Accepted by topic author NZgorski
September 2015

Re: Conversion Optimizer CPA Target Bid is Higher than my Daily Budget

Top Contributor
# 4
Top Contributor

Hi NZgorski,

 

If your campaign has limited budget, i would not recommend to enable the CO in your campaign. Conversion Optimizer works with campaign's previous data, e.g, your campaign budget, Conversion rate, keyword maximum CPC and Avg CPC, Then it bids in accordance with these data. So, Reducing the budget, would impact the campaigns negatively.

 

What I'm wondering is since I've adjusted my CPA Target bid about 3 times lower than what Google suggested my CPA Target bid to be, will this most likely end up decreasing my conversions?

 

It is always suggest to set the target CPA suggested by AdWords (Recommended target CPA) and higher than the Recommended Target CPA. As Recommended bid are calculated based on your campaign past data.

As you have adjusted the target CPA bid three times lower than recommended bid, your campaign may not receive any impression,

 

I would suggest to to read the below article for more info:-

 

https://www.en.adwords-community.com/t5/User-Articles/Determine-Bid-Strategy-Based-on-Your-Conversio...

 

 

 

 

--Rakesh Kumar, AdWords Top Contributor , Twitter | Linkedin | Community Profile
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