New Bidding Strategy in Adwords - Enhanced CPC Bidding

Enhanced CPC bidding

Google released a new feature that will allow users to automatically modify the CPC bids in the campaign for better ROI. For quite some time there has been an option to fully optimize on cost per conversion. Enhanced CPC allows users to choose a strategy between CPC bidding and CPA bidding. The feature varies the CPC but will not stop bidding on a word even though it is not converting as happends with Conversion Optimizer.

Enhanced CPC bidding uses the CPC in the account and modifies the bid when it thinks this leads to a conversion.

Factors taken into account

• Broad vs. exact match type
• Specific words that are present in the user’s query
• Historical performance of your ads on the site
• Match quality between ad and site content
• Current content on the site
• User’s location
• Browser Operating system
• User’s language setting
• Time of day

How does it operate?

To start with, Google will only modify bids in 50% of the auctions. The rest are treated as a control group. This way Google assesses positive impact on your conversion rate and CPA. If the result is better, Enhanced CPC will alter your bids in up to 75% of the auctions.

Bid will only be increased by a maximum of 30% from the CPC set in the account.

Why does Google launch this?

Conversion Optimizer often led to decrease in volume of clicks. As a consequence this feature was not used to the extent that Google hoped for. At least that´s Google´s explanation. One could imagine that the real reason is that revenue decrease too much for Big G. The future will show. If Google depreciates Conversion Optimizer, it was probably the latter explanation. See a video on the enhanced CPC bidding

See a video on the enhanced CPC bidding