What is "Enhanced CPC" bidding in Google Ads?
Enhanced CPC (eCPC), is a bidding strategy designed by Google to adjust your cost-per-click (CPC) bids automatically with the goal of driving more conversions at a similar cost-per-conversion.
Unlike standard CPC bidding, where your bids remain static until they are manually adjusted, eCPC uses machine learning to analyze past campaign data and predict which clicks are more likely to lead to a conversion. By increasing or decreasing your bid amount based on this prediction, eCPC tries to improve both the quantity and quality of conversions.
How does Enhanced CPC work?
Similar to other bidding strategies, eCPC uses Google’s machine learning algorithm to evaluate many signals in real-time (device type, browser, location, time of day, and more). When ECPC is turned on, Google’s systems will use your base bid and identify opportunities where increasing your bid could capture a conversion that otherwise might be missed with a manual bid. It may also save budget on clicks less likely to convert by lowering the bid.
How to set up Enhanced CPC bidding in Google
Enhanced CPC works best with conversion tracking, so make sure you are tracking conversions and have sufficient data in your campaigns, as the algorithm relies on historical conversion data to make bid adjustments (this will help the strategy perform at its best).
To turn on Enhanced CPC, follow these steps:
- Navigate to “Campaigns,” in the left column.
- Click “Campaigns” in the sub-column.
- Click “Campaign settings” in the upper tab.
- Open the “Bidding” section in the main body
- Select “Manual CPC” and check the box for “Enhanced CPC“. You many need to select “Manual Bidding” in order for all of your bidding options to appear.
Note: Before using eCPC, review how you count conversions for each conversion action to make sure it matches your goals. If you are tracking sales as conversions, you probably want to count every conversion. For leads, you probably only want to count one conversion per ad click.
Benefits of using Enhanced CPC bidding
Automatically Optimizes Bidding: Enhanced CPC fine-tunes your bids for each auction, aiming to capture the most promising conversion opportunities without the need for constant manual adjustments.
Increased Conversion Opportunities: By adjusting bids in real-time, Enhanced CPC can increase your chances of winning bids that are more likely to convert, potentially leading to higher conversion rates.
Efficient Ad Spend: While focusing on increasing conversions, Enhanced CPC also keeps an eye on maintaining a steady cost-per-conversion, making your advertising spend more efficient.
Best practices for Enhanced CPC performance
- Monitor Performance Regularly: Regularly review your ECPC campaigns to make sure your performance aligns with expectations.
- Use Conversion Tracking: Mentioned before, but worth reiterating – make sure conversion tracking is in place to feed accurate data to the ECPC algorithm. Better data allows this strategy to create precise bid adjustments.
- Set Realistic Budgets: Allocate enough budgets to your campaigns to give ECPC enough flexibility to adjust bids for capturing high-value conversions. Too little budget will make it harder for this strategy to work effectively.
- Combine with Other Strategies: ECPC works well other Google Ads strategies, such as targeting adjustments (like dayparting, device, audience) and ad extensions, to further enhance campaign performance.
Frequently asked questions
How does eCPC compare to other bidding types?
Enhanced CPC is a semi-automated bidding strategy that adjusts your manual bids for clicks that seem more likely to lead to a sale or conversion on your website. This automates some of the process compared to Manual CPC, which requires you to change bids manually. eCPC automates bid adjustments while still allowing for base bid control.
Smart Bidding, on the other hand, is a fully automated, conversion-driven bidding strategy that sets bids for each auction based on your conversion objectives, removing manual bid control but potentially offering higher efficiency.
Which campaign types does eCPC work with?
ECPC is primarily designed for use in Search and Display campaigns focused on driving conversions.
It is NOT available for all campaign types, including Shopping campaigns, which often utilize different automated bidding strategies like Target ROAS or Target CPA.
How long does it take for ECPC to start showing results?
Around two weeks, but it can be more or less depending on the amount of click or conversion volume that you have each day. The algorithm needs time to gather sufficient data and optimize bid adjustments for noticeable performance improvements.
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