Changes to enhanced CPC bidding in google adwords

AdWords is receiving an update or more of a notice. Advertisers may have noticed or will notice, a new alert. That there have been changes to Enhanced CPC bidding

What Enhanced CPC Bidding refers to?

For those who are just getting started with Adwords, Enhanced Cost per Click (ECPC) is a bidding strategy that automatically changes and adjusts your bids for clicks in real time to maximize your sales or conversions on your Digital footprint i.e website, blogs, editorials.

let's go for an Example:

Let’s assume you sell routers and you have set your maximum CPC for $4.00 with ECPC bidding on. If the AdWords system matches an auction that pertaining to a users preference and He/she may buy routers from your site, it might preferentially set your bid to $1.00 for that auction i.e Better match to a users search and lesser cost based on your quality score. (P.s: Building A good quality score has a lot of other factors like your Keywords, Landing page, CTR ). If the Algorithm ECPC finds a different auction where the customer's probability of purchasing your product will be lower, it automatically lowers your bid to %0.50 for that auction hence driving more value.

What Does this new change imply?

It basically entails “Enhanced CPC (ECPC) bidding now has become more flexible while adjusting your bids to get more conversions.” In short, with this shift in Enhanced CPC bidding, there will no longer be a bid cap. Before, ECPCs had limited flexibility pertaining to increasing the bids 30% above the Maximum CPC.

What Does This change imply For AdWords?

Moving forward, Adwords will be automatically adjusting to “ Account for differences in conversion rates across dimensions like audiences, Cohorts, and location.” To churn it down, ECPC will now be closely tracking at the location, Ad hocs, and audience targeting. AdWords algorithm or system will look for Customer journey maps, patterns of clicks and conversions while comparing and analyzing it with your past performances or Conversions. With the new change, if a specific location or Touchpoint have given more conversions, the algorithm will Deduce and continue feeding ads to that digital footprint. This applies why conversion tracking must be enabled in ECPC as this is how the date filters through.

This Entails advertisers no longer need to set bid adjustments to adjust for those types of dimensions as Google will be automatically handling that from now on.

However, if you already use your device bid adjustments and there is a criterion that Google is not meeting we suggest that you continue to use it. This can be applied to mobile and other devices as ECPS will not adjust for those differences.

Another enhancement will benefit the Search and Display campaigns. Now ECPC will help you increase the conversions while keeping your cost-per-conversions the same. Also, ECPC will help increase your conversions in shopping while maintaining your same overall spend.

How Do I Use Enhanced CPC?

Before you get started you will need to enable your conversion tracking. Without enabling conversion tracking you can't use the ECPC.

Sign in to your AdWords account.

From your Campaigns tab, click the name of the campaign you want to work with.

Click the Settings tab.

Find the “Bid strategy” section. Click Edit.

Choose Manual CPC bidding from the drop-down, and check the Enable Enhanced CPC option.

When you choose ECPC, AdWords automatically sets your ad rotation setting to “optimize for conversions,” even if it’s currently set to “optimize for clicks.”

Select Apply.

To do that you must choose a conversion source(s) that will help you track your ad leads. You can set up conversions for:

Websites

Apps

Phones

Imports

You can also use the ECPC for Shopping by setting up a shopping campaign.

Has The Change To Adwords Already Happened?

For some advertisers, it may have but Google will be rolling out the changes fully starting in June. Google suggests, on their support page, to continue monitoring your performance and adjusting your bids as necessary until then. When the change finally takes place on your account the algorithm will be able to analyze your results from the past and use it to get better results going forward, hopefully generating new conversions or sales for you.

Managing Google AdWords Enhanced Bidding

Understanding how AdWords Enhanced CPC Bidding may effect your current campaigns now’s the time to review your campaigns and make sure that you are hitting your goals. Leveraging Adwords Enhanced CPC is an additional opportunity to grow the effectiveness of your paid search campaigns. Like any paid search campaigns, tracking and monitoring performance is key for measuring success.