Tuesday, August 04, 2009

Pay Google by Conversion

If you're an old-school Google AdWords advertiser, you may remember that you originally set bids based on ad impressions (cost-per-impression, or CPM). Later, AdWords transitioned to a model in which bids were set based on ad clicks (cost-per-click, or CPC).

Now, as technology has become even more advanced, we’re seeing the next phase of search engine advertising: bidding for ads based on conversions (as defined by the advertiser, such as a website visitor purchasing a product or filling out a form). With Conversion Optimizer, Google does all the heavy lifting and complicated analysis, letting you bid simply based on how much a conversion is worth to your business (cost-per-acquisition, or CPA).

Each time someone types in a search, AdWords runs a new keyword auction. Advertisers who are still bidding on a cost-per-click basis will be using the same bid in many different auctions, so sometimes their bid may be too high or too low. However, for advertisers using Conversion Optimizer, Google will automatically adjust the bid for each of these auctions so that it can hit the sweet spot more often, helping the advertiser to make more money.

Click HERE for more details.

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