Anyone managing a campaign with at least 15 conversions in the last 30 days can use conversion optimizer. This rule is a big relaxation over the previous rule which required a very higher conversion number within 90 days period. In that way only big advertisers could qualify for it. No more now, however, nearly anybody can qualify now with less than one conversion a day. Let us see how it works:
It places your ad into historically high converting zone more often.
It manages the bid on its own. So, if exhorbitantly high bid is required to occupy a slot, it would place your ad there keeping in view the cost and probability of conversion.
If you are not meeting the required number of conversions within cost your ad automatically slows down.
When conversion goes down, it starts pushing your ad into low CPC zone. So, you start getting low cost per click.
Some important observations rearding the behavior of campaigns on conversion optimizer with respect to CPC are:
If your campaign is meeting the required number of conversions within the specified cost. Cost per click may be pushed up higher in your campaign. your ads would be occupying some highly coveted slots more often in this scenario.
if your campaign fails to meet the specified number of conversions within the specified cost. Your Cost per click will show dramatic fall. You may also see some unbelievable figures of avg. CPC.
It works better with Content rather than Search campaigns.
Where lies the Trick:
First and foremost, you should not believe what system suggests you to bid. Always choose the most comfortable level of cost of conversion. Check your weekly, monthly, average of cost of conversion and accordingly select a figure.
Keep conversion optimizer switching on and off, targeting reduction in Avg. CPC. It automatically produces Quality Score enhancements about which I had talked about in some previous post. Yes, the conversion optimizer needs a bit of shake to make it work properly.
Conversion Optimizer works well with campaigns which have even flow of conversions throughout the day. It is not advisable in situations where conversion flows are highly erratic. Your campaign may stop at wrong time, or may continue at a high delivery frequency at wrong times.
In case of you disqualify in above mentioned condition, consider using a back up campaign, which is not on optimizer. if you don't have all campaigns on optimizer, you may use it even in the case of diasqualification in the above scenario. Mostly campaigns related to stock markets disqualify. Remember, you should not use high cost per conversion bid in such a case.
In a branding campaign, you should use it to produce Low CPC, defining your conversion is a real trick here. Try something near to home page (Landing Page), and home page too!!!
When Optimizer produces Low CPC:
If your target is to achieve very low cpc through it, make view of a page, which is not too far away from landing page as conversion. Remember, the more difficult it is for the system to get the desired level of cost of conversion, the lower the cpc gets.
System should, however, be able to produce conversions, within not too far away of the limit. Otherwise, it would stop the campaign.
Keep on reducing the specified cost per conversion, till the system starts increasing the cpc value. You would be able to discover the best bid that way.
Always, give your campaign a spell of manual cpc bidding in between. This will help you create conversion history which is helpful for optimizer to behave properly.