Google's Conversion Optimizer, a New Tool for Online Advertising

Using Google AdWords to boost profits is not a secret of SEO experts. The service has been used with success since it was launched in 2003 as a site-targeted advertisements service. Throughout 2009, Google quietly rolled out and tested a new advertising technology named Conversion Optimizer.

This is an evolution from the old CPM methods (cost per impression) and what soon followed the CPC methods (cost per click), also known as PPC (pay-per-click). With Conversion Optimizer, a CPA method (cost per acquisition), Google expects to destroy and rebuild the whole online advertising industry.

Having huge capabilities at its disposal, the search giant will be the sole supplier of the new tracking and conversion success capability. AdWords users will be able to set conversion goals, and display ads in a more efficient way to help reach those goals.

The algorithm works this way. Let's say a website, in this case, an online game, wants to boost its services and popularity using AdWords. Using Conversion Optimizer, it can set goals for the visitors coming from AdWords, goals like visitors that register, actually play the game, spend more than an amount of time on the website, and so on. This way, Google will have to do all the heavy duties of tracking user actions and bill the website for converted users.

Conversion Optimizer also has an improved keyword auction system that will automatically adjust and filter search queries to properly display ads on more relevant pages.

In a post for the official Google blog, Andrew Silverman, Product Manager for Conversion Optimizer, said that “We’re excited to announce that this AdWords transformation is well underway: advertisers are already using the Conversion Optimizer to manage approximately $1 billion in spend annually.”

Regarding the product's usage utility, Mr. Silverman declared that “This new shift benefits two areas Google cares deeply about: showing our users the most relevant ads and helping our advertisers increase their profits.”

Essentially, from now on, the search giant will be doing all the heavy lifting and detective work for online advertisers. More information about Conversion Optimizer can be found here.