Inside AdWords reports the introduction of Conversion Optimizer, a new CPA bidding product.

"With the Conversion Optimizer, you still pay per click, but instead of setting CPC bids, you simply specify a maximum cost-per-acquisition (CPA) bid for each ad group. The Conversion Optimizer manages your CPC bids for you, making adjustments and showing your ads only when you're likely to get conversions.

To determine when to show your ads, the Conversion Optimizer predicts a conversion rate for your ads every time they're eligible to appear. This prediction is based on various factors. For example, here are some of the factors that affect the conversion rate on Kim's custom shirt website:

• The search query. Kim's conversion rate is higher when users search for custom shirts than when they search for shirts.
• The location of the user. Her conversion rate is highest when her ad shows in New York.
• The conversion history of particular sites. When her ad shows on certain types of content sites in the Google Network, Kim is more likely to get conversions.

Kim doesn't have access to these details, but they directly affect her conversion rate and costs. By considering these factors every time her ads are eligible to appear, the Conversion Optimizer can show her ads when she's more likely to get conversions. It uses the optimal CPC bid for her ad in each auction, thereby working to keep her average cost per conversion below her CPA bid. "

To start using the Conversion Optimizer, visit Support.

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