One of the most common bidding techniques in Google Ads is Enhanced CPC. It’s an improvement above manual CPC bidding. So you maintain control over your bids while still taking advantage of some of Google’s automated tools. We’ll take a deeper look at what enhanced CPC is, how it works, and under which circumstances it’s most useful in this post!
Let’s get started with the basics.
What is enhanced cpc? Enhanced CPC (ECPC) is a Google Ads marketing automation feature that integrates AdWords, video, the Google Display Network, and other features. Google controls your advertising bids on all of those platforms for you, so you don’t have to worry about it at all.
Isn’t it convenient?
Some marketers prefer manual CPC to enhanced cpc bidding. They believe it is risky to entrust the entire bidding process to an algorithm created by the same corporation that charges you for advertisements. So, who is correct? As always, it is dependent on your specific business and advertising approach. We’ll break down the advantages and drawbacks in this post to help you decide.
How Does Google Ads’ Enhanced CPC Work?
The term “Enhanced CPC” refers to a higher cost-per-click. It works by automatically adjusting your bids for clicks that are likely to result in sales.
Furthermore, Microsoft Advertising indicated that new campaigns would no longer have a manual CPC option and current campaigns that do not use ECPC would be automatically converted.
We can probably expect Google Ads and other PPC firms to follow suit in the near future. Start studying and trying ECPC if you want to pivot your pay-per-click services and strategy.
What Is the Cost Per Click (CPC)?
Technology allows you to collect crucial campaign data, such as what is enhanced cpc, how many people clicked on your ad, how many followed through and converted, and, most crucially, how much it cost you. The amount you spent for each ad click in a campaign is known as the cost per click.
Automated Bidding in Google Ads
You want to keep your CPC at a fair level to stay profitable. Manual CPC pay-per-click services require you to establish your maximum CPC bids, but Google Ads automated bidding allows you to choose your prices depending on your desired results.
Automation, particularly in the domain of paid advertising, may provide faster and frequently better results. Google Ads automatic bidding uses machine learning to make data-driven decisions on your CPC bids and deliver profitable results.
When Is Using Automated Bidding Appropriate?
Remember that the system optimizes your conversion bids based on historical conversion data. It lacks the necessary foundation to make a sale without conversions.
You’ll need to set up conversion tracking and have actual conversions pouring into your account if you want to boost your conversions. A PPC provider will usually inform you that 15 conversions each month will suffice for enhanced CPC bidding, rather than the 20 to 30 necessary for Smart Bidding methods.
Concerning Enhanced CPC
Manual bidding can help you obtain more conversions using enhanced cost-per-click. ECPC works by modifying your manual bids for clicks that appear to have a higher or lower likelihood of converting into a sale or conversion on your website. When optimizing for conversions, ECPC will aim to maintain your average CPC below the max CPC you set by automatically computing bids based on your cost per conversion and return on ad spend objectives.
Actually, this question is not unique: what is enhanced cpc and how can it be helped to improve conversions? ECPC helps improve conversions while attempting to keep your cost-per-conversion the same as it would be with manual bidding for Search and Display ads. When it comes to shopping and hotel promotions, ECPC can help you improve conversions while keeping your overall cost the same. You may also configure ECPC to optimize for conversion value, allowing you to prioritize high-value conversions and give appropriate values to different conversion actions. Adwords enhanced cpc may be used to optimize for conversion value in both Search and Shopping ads. In this piece, we’ll go over how ECPC works and how it may help you get more bang for your ad buck?
Manual CPC vs. Enhanced CPC
You may establish a maximum CPC bid for your advertisements with manual CPC, and you’ll never spend more than the amount you’ve specified per click. Enhanced CPC is an extra option under manual CPC that allows the algorithm to adjust your bid higher or lower than your maximum CPC bid depending on the most optimal decision at auction time.
How Does ECPC Work?
Now, we know exactly what is enhanced cpc? So, how does it work? Choose manual CPC as your bid strategy, then select the box to enable enhanced CPC bidding in your campaign bidding settings. You may then instruct ECPC to focus on boosting conversions or auctions with a high potential conversion value, or you may optimize conversions or conversion value. It makes bids based on auction time indications like location and time of day, as well as your past conversion data, to maximize your desired result.
What makes ECPC unique among other conversion based Smart Bidding methods
ECPC and another Smart bidding, bid strategies are designed to increase conversions and value. The key difference is that instead of allowing you to establish an explicit objective, Adwords enhanced CPC partially automates your manual bids by adjusting your max CPC. Other Smart Bidding bid methods completely automate your bid strategy depending on your CPA, or budget objective, and do not need you to establish human bids.
Smart Bidding provides you with the finest opportunity to enhance your performance. On the other hand, ECPC offers a level of human control that some individuals prefer.
Is it a more cost-effective option?
As a result, Google Ads increase your bid, resulting in additional purchases. Many other firms have noticed an increase in conversion rates as well. Isn’t that a nice thing?
You may have made more money, but it does not imply that you have made more profit. Can your profit margins withstand a 60% increase in advertising expenses?
Can Enhanced CPC vs. Manual CPC Help Established Businesses?
But what about established businesses that rely on internet advertising to boost sales? Is it possible for them to gain from ECPC? Yes, in some circumstances.
The majority of digital strategists agree that manual bidding is the best option.
Why? Control in a nutshell.
When you use manual bidding, you have more control over how much you spend each month. You may use your spreadsheet to calculate your profit margin by running numerous “what if” scenarios.
Playing “what if” using ECPC is considerably more challenging. That’s because you don’t know what your maximum bid will be determined by the Google Ads algorithm.
When you employ manual CPC bidding, your expenses are predictable and consistent. You may always experiment with different bids to determine where your sweet spot is if you want to spice things up. To find the ideal bid, you don’t need to utilize an algorithm.
Is It Beneficial to Customers?
However, for certain newer enterprises, the higher fee may be justified. This is because they are still adding clients who can provide a long-term income stream.
Consider that for a moment. Was it worth the extra fee if professional photographers came to your site, bought your tripods, and ordered more from your firm later in their careers?
Yes, for many firms. However, that is a long-term view. To keep those consumers engaged, you’ll need a long-term strategy as well as financial reserves as you wait for the investment to pay off.