AdWords finally released a feature I’ve been waiting for for years, a setting which optimizes your ads for conversions. You can find it by clicking on your campaign’s settings, under the ad delivery section.
Previously the options were to have the system optimize ads for CTR or to rotate them evenly. Because ads with the highest CTR do not necessarily convert best, I used to recommend most advertisers to set their ads to rotate, then manually pause those ads that are generating a lot of clicks but aren’t converting. That process was manual and time-consuming and AdWords has come up with a smarter way to optimize your ads based on what’s truly working for you.
To take advantage of this setting, you’ll need to have conversion tracking enabled in your account and you will want to create multiple ads per ad group so the system can run them against one another. The ad that is more likely to convert will start to be preferred by the system and will show more often. Have fun experimenting!