Post on 01-Nov-2014
description
Bidding & Conversions
1. Bid Simulator
2. Conversion Tracking
3. Conversion Optimizer
Overview
Bid Simulator
Do you ever wonder … ?
… how many more impressions can I expect to get?
… if I increase my Max CPC bid from $2 to $3, how many more clicks can I expect to get?
… how much would the clicks costs?
… how can I bid more effectively?
Bid Simulator Overview
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• 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
What is the Bid Simulator?
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.
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
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
Bid Simulator | UI – Scenario 2
Scenario 2: Your keyword receives lower traffic: shows the estimates of impressions only
Date range of simulation
Current bid
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’
Bid Simulator | How does it work?
Your quality score
We know
We estimate
Your competitors’ bids and their quality scores
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
The number of clicks you would have gotten for those impressions
The cost of those clicks
What are the advantages for the advertiser?
Bid Simulator | Advantages
• 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
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 changes do not hinder our ability to simulate
For broad match keywords, the # of impressions and clicks can change dramatically with each bid.
Bid simulator does not simulate conversions or predict future results
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Data gets refreshed once a day
Simulations are for Google.com and search partners only
Conversion Tracking
Which clicks are most valuable?
Keyword Impressions Clicks Average CPC Cost
“Roses” 1,000 50 $1.00 $50
“Flowers” 2,000 30 $1.00 $30
• Without conversion data:
Conversion data tells you:
CPC bid for flowers
is too high!
Keyword Conversions Cvr % Cost / conversion (CPA)
Profit / conversion (@ $7 margin)
“Roses” 10 20% $5.00 $2
“Flowers” 3 10% $10.00 $-3
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
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 on an Ad
Google Cookiesthe User
User PurchasesAdvertiser Account
Updated
Conversion Tracking
Implementation
• Go to Tools/Conversion Tracking
• Set-up wizard helps you choose
conversion type, customize text
image, and generate code.
Five
conversion
types
Language Selection
• 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, conversion data automatically populates your account
Implementation
Code
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
Google Confidential and Proprietary
Conversion Optimizer
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
How Conversion Optimizer works
You provide a Max CPA bid for each ad group
Then finds the optimal equivalent CPC bid for your ad each time it's eligible to appear
…in order to calculate a predicted conversion rate for each auction (based on historical data). . . .
user location
query performance
partner sites
more . . .
Conversion Optimizer considers many factors…
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2
3
4 Max CPA is combined with thePredicted Conversion Rate and Quality Score to produce Ad Rank
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 goalsSet a Max CPA
bid for an
AdGroup
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)
Conversion Optimizer Benefits
WHY should I
use it?
Save time. Set your max CPA, and Conversion
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
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
ad auction to avoid unprofitable
clicks
Gets you as many profitable clicks
as possible
Gets you more conversions at
lower costs
* 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
Simple vs. Multi-dimensional Bid Management
Simple Bid Management Multi-dimensional Bid Management
• Varies bids by keyword (only)
• No other factors taken into account
• Examples: manual bid management, 3rd party bid management
• Considers many other factors that indicate the value of a click (Examples: user location, match quality, user query, content site, etc.)
• Optimizes performance in real time based on the specific characteristics of each auction
• Opportunity to achieve much better performance
Google Conversion Optimizer
Keyword is not the only predictor of conversion rate
Conversion Optimizer considers many other auction factors in optimization, including:
Search targeting
• Broad vs. exact match
• Particular broad-match query
• Search partner site
Content targeting
• Content site “topic”
• Match quality between ad and content
• Actual content site
User attributes
• User location
• Browser
• Operating system
• Language setting
Factors unavailable to
simple bid management
10 Important things to know about the Max CPA bid
1The Max CPA bid is similar to the Max CPC bid – the most you want to pay for a conversion
2Although you are bidding with a CPA, with the Conversion Optimizer you still pay per click. It is like being charged a little piece of your CPA for each click
3
A Max CPA is not an average or target. Your average CPA will usually be less than your bid. (Just as if you bid a Max CPC and your average CPC is less than this, you might bid a Max CPA and get an average CPA below this.)
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You should start with the recommended bid presented when you first turn on Conversion Optimizer. Raise and lower your bid once you have some data to optimize your performance.
5 You can set a different Max CPA bid for each ad group
6Don’t set too low of a bid, particularly when you first turn on Conversion Optimizer. A very low bid is likely to reduce traffic.
7Monitor and tweak your Max CPA bidsas you would any other bid, to get the most profit from your campaign.
8Change your Max CPA as often as you like. If you’d like more conversions, raise your bid. If you’d like a lower average CPA, lower your bid.
9Your average depends on factors outside Google's control, so your actual CPA may sometimes exceed the maximum CPA you specify
10 Experiment and find out what works best for you!
10 Tips for Conversion Optimizer success
1Start with the recommended CPA bidand modify your bids often to find your “sweet spot”.
2It’s easy to try, so try it out. If you choose to turn off the Conversion Optimizer, your campaign will revert to the previous CPC bids you were using.
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Use the Conversion Optimizer with existing campaigns. The longer a campaign has used conversion tracking, the more data the Conversion Optimizer has available.
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If you don't have a campaign yet, but want to try Conversion Optimizer, create a new CPC campaign and let it run for a few weeks with conversion tracking. Then turn CO on, but keep in mind performance will improve over time as CO gets more data.
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Keep in mind that changes in ad performance are natural, and you may need to use the Conversion Optimizer for some time to get an accurate understanding of its effects.
6Don’t make huge changes to a campaign while running Conversion Optimizer. (Example: deleting all ad groups and replacing with new ones.
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Do make small changes to your campaign that fit your business needs. (Examples: adding/deleting keywords, changing creative, changing landing page.)
8Don’t remove your conversion tracking code from your website or move it to a different location while running Conversion Optimizer.
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Raise your Max CPA bid if you want to increase traffic and conversions. Lower your Max CPA bid if you want to lower your average CPA. Traffic will likely decrease.
10Compare your CPA and # conversions before and after using Conversion Optimizer so you know how much improvement it made on your campaign.
Select the campaign you want to enable for and click on “Edit Settings”’
Enabling Conversion Optimizer: Step 1
Enabling Conversion Optimizer: Step 2
Under Bidding & Budgeting, click on “Advanced Options” link
Enabling Conversion Optimizer: Step 3
Select the option “Focus on Conversion” to use Conversion Optimizer and click “Save”’
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
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
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.
•Increases your profits
Conversion Optimizer: Increases profit and saves time
Easy to use
No additional charge for AdWords advertisers
Multi-dimensional Bid Management for AdWords better matches ads with customers
Improves AdWords’ease of use with less time spent managing bids
No extra fees or new interfaces to learn
•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
Resources
Q & A