Today we’re announcing a new enhancement to Conversion Optimizer: Target CPA Bidding. With Target CPA Bidding, you can set a bid that reflects the average amount you’d like to pay for a conversion rather than the maximum you’re willing to pay for it.

We launched Conversion Optimizer in 2007 as a tool to improve your campaign ROI. Conversion Optimizer analyzes your conversion tracking data and automatically adjusts your bids for each auction. Over the past few years, we’ve been pleased to hear from a number of you that you've seen significant ROI improvements after implementing Conversion Optimizer. In fact, analysis indicates that, on average, those of you who use the tool experience a 21% increase in conversions along with a 14% decrease in CPA.*

This latest update to Conversion Optimizer was made in response to your feedback. We’ve heard from many of you that you’re more accustomed to thinking in terms of a target or average CPA when it comes to managing your online advertising (as opposed to the Max CPA bids which the tool has historically required). We hope that having the additional Target CPA bidding option will make it even easier for you to boost your AdWords ROI. Of course, if you’re happy using Max CPA bids with your Conversion Optimizer campaigns, then there’s no need to make any changes to your campaigns.

To enable Target CPA bidding, visit the Settings tab in your account, select ‘Focus on Conversions,’ and click ‘Advanced Options.’ Note that Conversion Optimizer is only available for campaigns that have implemented conversion tracking and have received at least 15 conversions in the last 30 days.