Enhanced Cost-Per-Click (eCPC) is a bidding strategy in Google Ads that automatically raises and lowers your bids based on your conversion data, in an attempt to get you more conversions while not wasting money on clicks that are less likely to convert. This way, you can focus on getting the most out of your budget while still reducing wasted ad spend.
How Enhanced CPC works
In the enhanced CPC bid strategy, Google Ads uses historical data to predict which clicks are more likely to lead to a conversion. When someone searches for one of your keywords and your ad appears, Google Ads will use its data to determine whether that person is more or less likely to convert. If the person is more likely to convert, then Google Ads will automatically increase your bid so you have a better chance of winning the auction and getting the click.
For example, let’s say you have a budget of $100 per day and you’re running an ad campaign with a CPA (cost-per-action) goal of $10. You’ve set your eCPC bid to $1.00. When someone sees your ad and clicks on it, Google Ads will track whether that person converts within your specified time period (e.g. 30 days). If the person does convert, then Google knows your ad was successful and will raise your bid for future impressions accordingly. If the person does not convert, then Google Ads will lower your bid for future impressions. Over time, this process allows Google Ads to optimise your bids automatically so you’re always getting the most bang for your buck.
The Benefits of Using Enhanced CPC
There are a few key benefits to using enhanced CPC:
- More conversions: By automatically raising your bids for clicks that are more likely to convert, enhanced CPC can help you get more conversions while not blowing your budget.
- Better ROI: Since enhanced CPC only raises your bids for clicks that are more likely to convert, you should see a better return on investment (ROI) from your ad spend.
- Less wasted spend: By lowering your bids for clicks that are less likely to convert, enhanced CPC can help reduce wasted spend on less valuable clicks.
- Automatic optimisation: With enhanced CPC, you don’t have to worry about manually optimising your bids.
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The Drawbacks of Using Enhanced CPC
There are a few potential drawbacks to using enhanced CPC:
- Less control: Since enhanced CPC automatically adjusts your bids based on conversion data, you’ll have less control over your ad spend than with other bid strategies.
- More expensive clicks: Since enhanced CPC raises your bids for clicks that are more likely to convert, you may end up paying more per click than with other bid strategies.
- Longer learning period: Enhanced CPC can take longer to learn and optimise than other bid strategies since it relies on data from past conversions to make decisions. You need to have it in place for at least 2 months before it really starts to enhance performance.
How to Set Up Enhanced CPC
If you’re interested in using enhanced CPC for your next ad campaign, there are a few things you need to do:
- Set up conversion tracking: In order to use enhanced CPC, you’ll need to set up conversion tracking. This allows Google Ads to track whether or not someone who clicks on your ad ends up converting. Without conversion tracking, Google Ads won’t be able to optimise your bids accordingly.
- Choose your bid strategy: When setting up your Google Ads campaign, be sure to select “Enhanced CPC” as your bid strategy. You can find this option under the “Bidding” section.
- Set your eCPC bid: Enhanced CPC will automatically adjust your bids based on your conversion data, but you still need to set an initial bid. This is called your “eCPC bid.” Your eCPC bid is the maximum amount you’re willing to pay for a conversion. For example, if you set your eCPC bid to $1.00 and someone clicks on your ad but doesn’t convert, Google Ads may lower your bid to $0.50 for future impressions. However, Google may also bid higher than the eCPC bid for more valuable conversions, so users may end up paying more.
- Set your budget: Be sure to set a daily budget that’s comfortable for you. Remember, enhanced CPC will automatically adjust your bids based on conversion data, so you don’t need to worry about overspending.
Frequently Asked Questions
What is the conversion value for enhanced CPC?
The conversion value is the maximum amount you’re willing to pay for a conversion.
How can I bid on keywords using enhanced CPC?
Keyword bids can be adjusted using the enhanced CPC bidding option. This can be done by setting a bid adjustment for each keyword. The bid adjustment is the percentage your bid will be increased or decreased for that keyword.
What are some automated bidding strategies I can use with enhanced CPC?
There are a few automated bidding strategies you can use with enhanced CPC, including Target CPA, Maximise Conversions, and Target ROAS.
What is a portfolio bid strategy and how does it work with enhanced CPC?
A portfolio bid strategy is a collection of automated bid strategies that are each applied to a different subset of your keywords. This allows you to optimise your keywords for different goals. For example, you could use Target CPA for your brand keywords and Maximise Conversions for your non-brand keywords.