San Francisco — Google has introduced a new Target CPA bidding option tool in AdWords that lets marketers who considers in terms of “a target” or “average CPA” — set a bid that displays the average amount they would like to pay for a conversion, as opposed to the maximum they are willing to pay for it, when it comes to managing online advertising.
“We introduced Conversion Optimizer in 2007 as a tool to improve your campaign ROI,” says Emily Williams of Google’s Inside AdWords crew. “Conversion Optimizer analyzes your conversion tracking data and automatically adjusts your bids for each auction. Over the past few years, we have been pleased to hear from a number of you that you have seen significant ROI improvements after implementing Conversion Optimizer. In fact, analysis indicates that, on average, those of you who use the tool experience a 21% increase in conversions along with a 14% decrease in CPA.”
“This recent update to Conversion Optimizer was implemented in response to your feedback,” says Williams. “We have heard from many of you that you are more adapted to thinking in terms of a target or average CPA when it comes to managing your online advertising (as opposed to the Max CPA bids which the tool has historically required). We hope that having the additional Target CPA bidding option will make it even easier for you to boost your AdWords ROI.”
To activate the new Target CPA bidding attribute, advertisers must be signed into their account, then go to “Focus on Conversions,” and then, just select “Advanced Options”. However, the Conversion Optimizer is only available for campaigns that has applied conversion tracking, and have received at least 15 conversions over the last 30 days.