Google to Offer AdWords Conversion Optimizer

Google is making cost-per-acquisition (CPA) based bidding available to AdWords advertisers through a new Conversion Optimizer tool. Advertisers specify a maximum CPA bid, and then the tool will use historical information about the campaign to automatically generate an optimal CPC bid for each auction.

Advertisers still pay per click, but no longer have to manually adjust their bids to reach CPA goals.

Conversion Optimizer requires that a campaign currently uses AdWords Conversion Tracking and has at least 300 conversions in the last 30 days. Ads can appear on both the search and content network.

Google also offers CPA-based pricing on its pay-per-action (PPA) beta, where advertisers pay only when an action they define occurs, such as a purchase on their site or newsletter sign-up.

Tried Conversion Optimizer? Share your thoughts on it in the Search Engine Watch Forums.

About the author

Kevin Newcomb joined ClickZ in August 2004, covering search marketing and other online marketing topics. He has been reporting on web-based businesses since 2000.

Before the bubble burst, Kevin was a marketing manager for an online computer reseller, handling copywriting, e-mail marketing, search marketing and running the affiliate program.

With a combination of real-world marketing experience and years of business journalism, Kevin brings to ClickZ a unique ability to deliver news and training materials that help online marketers do their jobs better.