What is the Conversion Optimizer and how does it work?

The Conversion Optimizer is an Google Ads feature that uses your Google Ads Conversion Tracking data to get you more conversions at a lower cost. It optimizes your placement in each ad auction to avoid unprofitable clicks and gets you as many profitable clicks as possible.

How it works

With the Conversion Optimizer, you bid using a maximum CPA, which is the most you're willing to pay for each conversion (such as a purchase or signup), or a Target CPA, which is the average amount you'd like to pay for a conversion. Using historical information about your campaign, the Conversion Optimizer automatically finds the optimal equivalent cost-per-click (CPC) bid for your ad each time it's eligible to appear. You still pay per click, but you no longer need to adjust your bids manually to reach your CPA goals and can benefit from improved ROI.

To calculate the optimal equivalent CPC bid, the Conversion Optimizer first calculates a predicted conversion rate for each auction. The Conversion Optimizer takes many factors into account, including your ad's conversion history, the keyword's broad match query, the user's location, and the conversion rates of Google's search and partner sites on the Display Network. The feature then generates an ad rank by combining your CPA bid, quality score and predicted conversion rate.

Improving your performance

Many advertisers using Conversion Optimizer have achieved double-digit percentage increases in conversions, while paying the same price or less for each conversion.

Requirements

To begin using the Conversion Optimizer, you must have Google Ads Conversion tracking enabled, and your campaign must have received at least 15 conversions in the last 30 days. Also, the campaign must have been receiving conversions at a similar rate for at least a few days. We recommend you run conversion tracking for at least two weeks before trying the conversion optimizer no matter what your volume of conversions is (more if you don't have a high volume of conversions).

Learn how to enable Conversion Optimizer.

An important note

Your actual CPA depends on factors outside of Google's control, so it may exceed the maximum CPA you specify. The Conversion Optimizer uses historical conversion data to predict the likelihood your ads will convert. However, your actual conversion rate can be affected by changes to your website and ads, or external factors such as increased competition. If your actual conversion rate turns out to be lower than the predicted conversion rate, your actual CPA may exceed your maximum CPA bid or your Target CPA.

Watch this video to learn the difference between simple bid management and multi-dimensional bid management plus tips for success with Conversion Optimizer. You can also go to our Conversion Optimizer homepage for more information.

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