A/B Testing with Cost Per Action for Maximized Conversion

To monitor keyword performance every four weeks at the account level and make necessary adjustments based on data analysis.

Objective:

To conduct an A/B test using cost per action with maximized conversion settings inside campaigns to lower the cost per conversion over a period of 4 weeks.

Key Steps:

  1. Navigate to the campaign that needs testing.
  2. Go to settings and then to bidding.
  3. Ensure that the bidding strategy is set to maximize conversions.
  4. Check the box for cost per action and set it to be 10% lower than the current cost per conversion.
  5. Repeat this process weekly for 4 weeks, adjusting the cost per action each time to aim for a 25-40% decrease in cost per conversion.
  6. Monitor the cost per conversion weekly to track the effectiveness of the test.
  7. If the cost per conversion continues to decrease, continue the test until it plateaus for 2-3 weeks.

Cautionary Notes:

  • Ensure that the cost per action is consistently set lower than the current cost per conversion to test its impact effectively.
  • If the cost per conversion does not decrease after each adjustment, reassess the strategy and make necessary changes.

Tips for Efficiency:

  • Use a consistent formula to calculate the new cost per action based on the current cost per conversion.
  • Keep track of the results weekly to determine the success of the test.
  • Stop the A/B test if the cost per conversion does not decrease after multiple adjustments over a few weeks.

By following these steps, you can effectively conduct an A/B test using cost per action to optimize conversion rates and lower the cost per conversion in your campaigns.

Posted in