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Lost imp. share budget display conv. opt.

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# 1
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Hi

 

I´m a bit confused about how the conversion optimizer works, especially when it comes to display advertising and one is having a broad reach (like a lot of countries and topics as targeting method).


Considering that conversion optimizer is supposed to find as many conversions as possible for me, I am surprised that those display campaigns often get a very low impression share due to budget, and still not very low CPA:s.


If there were a lot more impressions available, I´d expect some of them would be at a low cost, and that the system would try to show my ads for those, which would also increase my chances of getting cheaps conversions (given that the conversion rate would be high enough, but I think that is the case, I mean: we are talking a lot of impressions, and conversion rate is pretty high in this case, like 15%).

 

So, I´d expect the system to adjust and save some of my budget so that I´d be bidding in more auctions than I apparently am. But it doesn´t seem like it does.

 

Any thoughts on how conversion optimzer and CPA bids work with budget for display campaigns?

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Accepted by topic author David_Precisera
September 2015

Re: Lost imp. share budget display conv. opt.

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# 4
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Hey David,

 

Good question. There are at least 3 factors playing into your low impression share number.

 

First, there are so many impressions possible on the Display Network (regardless of targeting) that it's nearly impossible to gain IS at levels that are anywhere close to Search Impression Share.

 

Second, while running Conversion Optimizer, the Google algorithm is choosing to show your ad for a certain number of impressions because it deems those to be the most relevant and give you the best chance for a conversion possible based on your previous conversion data. The Impression Share number does not exclude those impressions Google had determined to be "less suitable" for your conversions, therefore, the number of possible impressions (the number your share is calculated from) is typically much higher than the number of impressions determined to give you a good shot at a conversion. 

 

Third, bringing your budget into consideration, if you're budget capping your campaigns, Google has to pull back on impressions so as not to over spend. Again, the number of possible impressions will be much higher than those that are relevant and those that are able to be targeted within budget restraints. 

 

As far as the high CPAs go, Conversion Optimizer can be a great tool to gain conversions at a desired CPA, but it's not a guarantee. It could be due to your previous conversion data being toward the lower end or you may benefit from revisiting your targeting and adding some further segmentation. Hard to tell, but there are some steps you can take to mitigate the higher CPAs. 

 

 

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Re: Lost imp. share budget display conv. opt.

Top Contributor
# 2
Top Contributor
Hi David,

This is interesting questions. After running the Conversions optimizers campaign, I have experienced that Conversion optimizer makes the bidding models based on some internal and externals factors. If you are running the campaigns optimizers, you need to give leverage on budget, unlike the cpc bidding campaigns, you can not manage the budget by reducing bids. Means If you have limited budgets you may miss the cheaper conversions. Once the CO campaigns starts giving the Conversions at the set CPA, and budget is exhausted, you need to increase budget or you can only play with ad scheduling.

This is why it is always recommended Conversions optimizers always works with that campaigns, wwhich has higher budget, you can not reduced the CPA bids.
Please read more about conversion Optimizers in below article -
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
Did you find any helpful responses or answers to your query ? If yes, please mark it as the ‘Best Answer’

Re: Lost imp. share budget display conv. opt.

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# 3
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So, CO doesn´t take into account that it may be possible to find even cheaper conversions on a daily basis, it just puts a bid in whatever auction it thinks it can get a conversion at the CPA target with certain probability.
Marked as Best Answer.
Solution
Accepted by topic author David_Precisera
September 2015

Re: Lost imp. share budget display conv. opt.

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭

Hey David,

 

Good question. There are at least 3 factors playing into your low impression share number.

 

First, there are so many impressions possible on the Display Network (regardless of targeting) that it's nearly impossible to gain IS at levels that are anywhere close to Search Impression Share.

 

Second, while running Conversion Optimizer, the Google algorithm is choosing to show your ad for a certain number of impressions because it deems those to be the most relevant and give you the best chance for a conversion possible based on your previous conversion data. The Impression Share number does not exclude those impressions Google had determined to be "less suitable" for your conversions, therefore, the number of possible impressions (the number your share is calculated from) is typically much higher than the number of impressions determined to give you a good shot at a conversion. 

 

Third, bringing your budget into consideration, if you're budget capping your campaigns, Google has to pull back on impressions so as not to over spend. Again, the number of possible impressions will be much higher than those that are relevant and those that are able to be targeted within budget restraints. 

 

As far as the high CPAs go, Conversion Optimizer can be a great tool to gain conversions at a desired CPA, but it's not a guarantee. It could be due to your previous conversion data being toward the lower end or you may benefit from revisiting your targeting and adding some further segmentation. Hard to tell, but there are some steps you can take to mitigate the higher CPAs. 

 

 

Re: Lost imp. share budget display conv. opt.

Top Contributor
# 5
Top Contributor
Hi David, CO Tries to show ads to the potential users by considering several factors on real time, Locations, Time, Device, Competitions, and web pages where your ads will show. Or It also Consider the Target CPA. Once you start the CO campaigns, then you can see the lower CPA, Post then you can reduce the Target CPA.

That's why CO campaigns is always recommended for high budget campaigns not for limited budget campaigns.
--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’

Lost imp. share budget display conv. opt.

[ Edited ]
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# 6
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>> If you are running the campaigns optimizers, you need to give leverage on budget, unlike the cpc bidding campaigns, you can not manage the budget by reducing bids.

 

 

@Rakesh Kumar,  could you please explain that a bit more?

 

Why can't you control the budget by reducing target cpa bid?