Adwords defaulting ad rotation to “Optimize for conversions” in Feb 2012
In late February 2012, campaigns with “Bidding options” set to “Conversion Optimizer” or “Enhanced CPC” will have their “Ad rotation” defaulted to “Optimize for conversions” instead of current “Optimize for clicks”.
Campaigns using Conversion Optimizer or Enhanced CPC with “ad rotation” set to “Rotate: Show ads more evenly” will remain unchanged.
This change does align both “Bidding options” purpose with “Ad rotation” to focus on conversions and CPA for advertisers using “Conversion Optimizer” or “Enhanced CPC”.
Google also mentioned “our studies have shown that campaigns moving from “Optimize for clicks” to “Optimize for conversions” see a 5% increase in conversions on average.”
Advertisers can still opt out of this change before February 14th, 2012.
Holmes, I think you made a valid point that Adwords “Optimize for conversions” can make bad decisions. I would think that happens when there are not enough conversions for Adwords to make good decisions. Adwords requirement for conversion optimizer bidding “Each campaign must have received at least 15 conversions in the last 30 days” is definitely not enough.
I would think EVERY keyword should receive at least 10 conversions to be meaningful for Adwords. If that makes sense, EVERY ad would need hundreds of conversions to be suitable for “Optimize for conversions” as each ad is activated by tens of keywords (even if they are tightly themed).
For “Optimize for clicks”, I actually think it is not too much a problem as it gets the most clicks per budget for managers to decide which ads are better.
Hence, i think “Optimize for conversions” is useful for
- long running campaigns with thousands of conversions
- if clients’ goals are for results rather than branding
- when handing over account back to customers’ management, as we wont be there to choose the better ads then. Better safe than sorry in case bad ads get evenly rotated.