Biggest Lie : Conversion optimizer is working well for lead gen campaign.
Conversion Optimizer (Target CPA bidding) is a cool feature, which uses machine learning to automatically target visitors who are more likely to convert. This is a good opportunity to leverage Google’s engine to drive more conversions for lower cost.
Target CPA bidding optimizes CPC, based on the probability to convert. Based on your campaign’s history of conversions, Target CPA bidding automatically finds the optimal CPC to maximize conversion.
But right now, Ad agencies blindly use this option and lose most of their budget unprofitably, not knowing the science and logic behind this. Machine learning algorithm analyze historical data and predicts the probability of conversion for each impression.
If an agency is using conversion optimizer for lead gen campaign, without using Google analytics offline tracking, I would say you are working with the wrong agency. Either you should stop the campaign or fire the agency.
The lead gen campaign’s main concern is the quality of the leads, because cheaper leads don’t guarantee the quality. Based on experience, it is highly probable that cheaper leads come with low quality. If the campaign receives low-quality leads for low cost, conversion optimizer automatically adjusts and provides low-quality leads. If your agency doesn’t link actual customers to campaign performance, your budget will be wasted, even without knowing it.
To overcome this issue, you need to use Google Analytics offline tracking feature and upload all the successful customers to GA as a Goal. Once you have successfully linked the campaign to the customer, you can use the attribution model to understand the actual performance of each campaign, ad group, keywords, ad etc. Finally, you can understand the campaign that provides low-quality leads and the campaign that provides high-quality leads and allocate your budget accordingly.