Decide if Google's Enhanced CPC or its Conversion Optimizer is best for you.
Google released Enhanced CPC this week to help AdWords users improve ROI. But is it better than Conversion Optimizer? Let's take a look:
How Enhanced CPC works:
Each and every time an ad is eligible to appear, Enhanced CPC will automatically adjust your bid based on the likelihood a click will convert. If the system sees that there's a probability this will occur, it will increase your max bid by up to 30%. If it predicts that an auction has a low probability of resulting in a conversion, it will decrease the bid in order to reduce the cost of a potential click from that auction. There is no limit on how much the system will reduce your maximum cost-per-click bid.
When first enabled, Enhanced CPC will modify 50% of the auctions your ad is eligible for. Once the system has enough information to analyze its performance against the remaining 50% of the ads, it will adjust bidding. If Enhanced CPC finds that it is not benefiting your campaign, it will automatically reduce its impact but not stop modifying bids. If it has made a positive impact and your campaign has a strong performance, then the system will modify the bids of up to 75% of auctions.
But how does it know what is likely to convert?
Among many other variables, the system looks at:
- user's location
- user's browser
- language settings
- time of day
- time of week
- specific words in search query
- match type
- historical performance
Conversion Optimizer
This free AdWords tool manages your campaign based on your cost-per-acquisition goals. To use, your campaign must have Conversion Tracking enabled. The Conversion Optimizer uses this data to optimize the placement of your ads in each auction based on the probability of a conversion will occur at that time. It uses historical data from Conversion Tracking to learn where and when your ads are most likely to get conversions.
How it works:
The tool analyzes conversion tracking data to decide the likelihood of which type and how often an auction will convert. It then predicts which auction will perform best in the future based on past perfomance. Conversion Optimizer will continually adjust bids and invest in the better performing ads to ensure that your money is spent effectively.
Conversion Optimzizer weighs the most recent data more heavily than older data. Therefore, it's better to use Conversion Optimizer with an exisiting campaign that has had AdWords Conversion Tracking enabled for a while.
Similar to Enhaced CPC, Conversion Optimizer looks at:
- user's location
- users' browser
- language settings
- matchtype and quality
- historical performance
- time
On average campaigns using Conversion Optimzer experience a 21% increase in conversions and a 14% decrease in cost-per-conversion. Of course, numbers and results vary by campaign.
Take away points:
- The two systems aren't much different, but each has its own benefits. Choose which one is right for you based on how comfortable you are letting Google do the work for you.
- Both tools are easy to test. If you don't like the results from Conversion Optimizer, turn it off and the campaign will revert to your previous CPC bids.
- Enhanced CPC is very easy to use. Just check the box to enable it and let Google do its thing.
- Conversion Optimizer can only be utilized if your campaign received 15 conversions in 30 days. Enhanced CPC does not have a required minimum number of conversions to be used.
- Both will show your ads more when you are likely to get conversions.
Even after reading all this are you still apprehensive about handling your AdWords campaigns? Let us help!
Related resources from Adam Howitt Consulting, Inc.:
Google AdWords campaign management
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