Google's Conversion Optimizer was released in January and was designed to streamline the AdWords bidding process. Now, Google has announced that the tool is supported by AdWords Editor and Adwords API.
In order to use Conversion Optimizer, you must have AdWords Conversion Tracking enabled and have accrued 200 conversions over the past 30 days. Conversion Optimizer uses several factors to determine an optimal CPC bid based on the maximum CPA set by the user. Factors include broad matching, content network or search partner site where an ad is displayed, and where the user is located.
Writing on the Inside AdWords blog, Trevor Claiborne explained, "The keyword "flowers" may have a 2% conversion rate while the keyword 'roses delivery' may have a 7% conversion rate. That doesn't mean that you don't want any clicks on 'flowers,' but you probably wouldn't want to spend as much on that keyword as you might be willing to spend for clicks on 'roses delivery' The Conversion Optimizer uses information like this to adjust your bids based on how valuable each click is for you."
What do you think about Conversion Optimizer being supported by AdWords Editor and API? Let us know in the comments.