Wednesday, Feb 22, 2012
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The Google Conversion Optimizer – Optimizing your Internet marketing business!

We’ve all had moments when we’ve wished it could just be simpler. Clean and easy, set it and forget it. Well, Google can’t help make household cleaning, commuting or relationship interplay any easier, but it can cut down on the extra steps it takes to run your online business.

With the Conversion Optimizer, Google takes the analyzing, guessing and bidding out of advertising with AdWords.

This tool is free for anyone with an AdWords account and campaign. It’s a three-part prediction asset that takes the number-crunching guesswork off your plate and gives it to the algorithm whizzes at Google. We all know how impressive, mysterious and powerful the Google algorithm has become, who wouldn’t want some of that working for your profits?

As an affiliate or an Internet marketer, you know how AdWords works. For every query entered, there’s a keyword auction for bids.

Back in the day, you would bid based on ad impressions. Today, you bid based on ad clicks (CPC), and hope that the clicks you predict will result. With the Conversion Optimizer, you can bid based on what the conversions are worth, or CPA.

In short, the system assess and adjusts your bid for you, so you hit the mark more often, rather than bidding too low, or overpaying. It makes advertising more efficient.

The Conversion Optimizer works by:

  • First reviewing your conversion tracking data, to see how often each type of bid or auction leads to a conversion.
  • Then it builds a prediction model, or algorithm, to estimate which auctions will get the best results for your ads.
  • Finally, it learns as it goes, adjusting bids efficiently for auctions. The ad rank is generated by your CPA bid, quality score and the predicted conversion rate.

Marketing Factors

Just as you would, the Conversion Optimizer takes the customer (the searcher) into account, as well as when and where your ad gets the most conversions. More than a dozen factors are judged, including where the ad will run, what type of keyword match is the bid for, and the operating system and browser being used by your potential viewer/future customer.

So what’s the catch? Why would Google care to make your advertising more cost efficient and effective? Why do they care about your conversions?

It goes back to their love of relativity. Google wants your ads to show up when they are most relevant just as much as you want to target potential buyers. By helping out with the data-crunching, they can put your ad in front of the right audience – for them as well as you.

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