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Help Me Understand Conversion Optimizer Better

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

I've recently taken over an Adwords account that is running Conversion Optimizer - a new way of bid management for me. I'm a bit confused as to how best understand the results that CPA brings to the table. 

 

For example, there is an ad group for "red widgets" that has 20-odd keywords . The "Max CPA" has been set at $40, but the average cost per conversion for the ad group is actually at $60".

 

Basically, I want to understand better:

 

* The average position of the ad group has been worsening over the past couple of weeks ... but I know from historic data this ad group converts the best as close to position 1 as possible. There have been fewer conversions recently, so I'm guessing that Adwords is reducing position to try and reduce the cost (to keep CPA as close to target as possible?) 

 

To increase position do I need to simply increase CPA target? Or should I be looking at adding more negatives, improving CTR etc.

 

I find optimizing CPC campaigns easy enough, but CPA is a different beast.

 

Thanks in advance

1 Expert replyverified_user

Re: Help Me Understand Conversion Optimizer Better

Top Contributor
# 2
Top Contributor
Hi Sam,

As you have enabled CPA bidding but assign maximum CPA $40( which is lower than the actual CPA $60). So I just would like to ask have you checked what is the recommended CPA, while enabling CPA bidding.

Now, AdWords System try to bring conversion at the rate or around that you a have set the max CPA.

So, if you have set $40 max CPA recently, then increasing the CPA will help you, as you need to understand the CPA always works best on the basis of past campaign performance.

--Rakesh Kumar, AdWords Top Contributor , Twitter | Linkedin | Community Profile
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Re: Help Me Understand Conversion Optimizer Better

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭

Hi Rakesh,

 

Thanks for your reply.

 

When I took over managing the account, all the ad groups already bidded using Conversion Optimizer - I did not chance from CPC to CPA.

 

 

Re: Help Me Understand Conversion Optimizer Better

Top Contributor
# 4
Top Contributor
Then you can see it on the change history column.
--Rakesh Kumar, AdWords Top Contributor , Twitter | Linkedin | Community Profile
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer’