Today we're announcing the launch of a new ad rotation setting in AdWords that allows you to optimize for conversions. Previously, you had two options:

• Optimize for clicks: Ads that are expected to provide more clicks are shown more often
• Rotate: Ads are shown more evenly

Now, with a third option, you can choose to show ads that are expected to provide more conversions more often. We'll look at a combination of clickthrough rate and conversion rate to determine which ads to show.

We’ve always encouraged you to test multiple ads in each ad group, and we’ve offered our help by showing ads with the highest clickthrough rates more often. However, some of you have told us that the ad with the highest clickthrough rate isn’t always the ad with the highest conversion rate and that you’d like to be able to optimize for conversions rather than clicks. Starting today, we’re allowing you to do just that.

To use the new setting, you’ll need to have Conversion Tracking in your account, as we use the data from that tool to determine which ad is the most likely to receive conversions. When we don’t have enough data to make a decision, we’ll show the ad that is the most likely to receive clicks. If you have Conversion Tracking, the Optimize for conversions option will be available in the Ad delivery: Ad rotation, frequency capping section under Advanced settings on the Settings tab of any campaign. Once enabled, it will apply to all ads that appear on Google and our search and display partners’ sites.

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By providing another way to define the “best-performing” ad, we hope to make it easier for you to experiment with your ads and learn which ones are the most successful in helping you reach your advertising goals. For more information on ad rotation settings, please visit our Help Center.

Posted by Lisa Shieh, Inside AdWords crew