03.15.07
Adwords Ad Optimization should be based on CPA
Adwords ad optimization is a great tool that helps advertisers maximize ad exposure and get more for their spends. You can create hundreds of different ad variation to test different messages, at no extra cost. The way the system works is, Adwords rotates your ads and automatically picks the best performing ad based on click through rate. The winning ad is then shown more often. This brings more visitors to your site. Although click through rate tells you how well your visitors respond to your ad, a high click through rate doesn’t always favor the advertiser.
For example, if you had an ad that said “Free Elmo dolls”, and another ad that read “Buy Elmo dolls”. You can assume that the first ad will get a higher click through rate, but fewer purchases. The Adwords ad optimization tool would be even more useful if google would allow advertisers to choose which metric to base optimization on. Google could easily base the optimization on cost per lead because they already keep track of conversions. You can help convince Google to make this system enhancement by filling out the Adwords feeback form here.
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