Are you looking to increase AdWords conversions and lower your cost per conversion? You should be using CPA bidding. According to AdWords, advertisers who use Conversion Optimizer ssee a 21% increase in number of conversions while decreasing costs by 14%. Instead if painstakingly managing ad groups and keywords bids, or purchasing costly software that does that, AdWords will do the work for you. You’ll still pay per click, not per conversion. But the system will optimize your bids for you to help you reach your set goals.

The tool is free of charge and in order to use it, you’ll have to be tracking conversions, of course. Additionally, your campaign will have to have accumulated at least 15 conversions over the past 30 days.To see if you are elgible and start using it, go to your campaign settings and under Bidding and budget click on Edit your current Bidding option. You will see a Focus on conversions (Conversion Optimizer) option.

If you are eligible and would like to use it, you will want to decide if you want to do Max CPA or Target CPA bidding. If you’re new to the tool, I recommend choosing the system recommended bid in order to keep your traffic stable. If you go much below the system recommended bid, you might get less traffic and fewer conversions. Plus, you can always adjust the CPA bids, as you see how your campaign performs.

Conversion optimizer users your campaign’s historical conversion data and also takes into browser information, geographic location, and other information to help you achieve your conversion goals. CPA Bidding is one of the most robust tools AdWords provides to help advertisers optimize and manage ROI. If you aren’t eligible for CPA bidding and are tracking conversions, you might want to consider another conversion focused tool AdWords offers called Enhanced CPC I previously blogged about here.