Google’s nifty little tool, the Conversion Optimizer, has been updated. Originally launched in September, the tool is designed to optimize Google PPC ads for conversion.
The Conversion Optimizer uses user data from your website to observe when most of your conversions occur from PPC ads. The Optimizer lets you specific a maximum cost per acquisition (CPA) for an adgroup, then automatically adjusts your bidding to keep your CPC down and your conversions up. It’s designed to minimize the cost per acquisition and maximize the number of conversions.
Currently, it sounds like the primary method for doing this is automatic dayparting. According to the official announcement, the Conversion Optimizer accomplishes all this by “showing ads when conversions are most likely to occur.”
The Inside AdWords blog cites one case study of this in action from Moritz Daan, CEO of Webgamic’s CEO: