The end of enhanced CPC for Google Shopping: what to do next

Google Ads is a fantastic platform for raising brand awareness and finding new customers for your business.

That being said, it likes removing and replacing features. This can make it extremely challenging to put together a solid PPC strategy that stands the test of time!

In 2023 alone, Google Ads has sunsetted similar audiences, phased out non-data-driven attribution models, and discontinued content targeting for YouTube ads.

Another thing that we'll soon be saying goodbye to? Enhanced CPC for Google Shopping. ?

What's enhanced CPC for Google Shopping?

Enhanced cost-per-click (CPC) is a bidding strategy that complements your manual bidding strategy in Google Shopping.

(By manual bidding, I mean setting your bid rate for specific keywords by hand rather than relying on one of Google Ads' automated bidding strategies.)

When enhanced CPC is enabled, it gives Google Ads the green light to increase the cost of your bid slightly if there's a high chance of a conversion. To do this, it takes a range of factors into account, including location, time of day, and whether the search takes place on mobile or desktop.

So, let's say you're targeting 'men's sneakers' at a bid rate of 90p. If Google Ads believes the search will lead to a sale, it will push up the bid rate (say, to ￡1.40) to complete harder for clicks. The bid rate was originally limited to a 30% adjustment, but Google Ads removed this cap.

Enhanced CPC also works the other way. So if Google Ads thinks Oasis is more likely to reunite than you are to win a sale, it will knock your bid down so you can save money.

However, all of this is moot. Last month, Google Ads announced it would sunset this bidding strategy in October 2023, to the disappointment of marketers getting ready for the Black Friday sales.

The good news is that enhanced CPC will still be available for search ads.

For now, anyway. I wouldn't be surprised if I'm writing a similar article about enhanced CPC and search ads in six months' time.

Why is Google Ads getting rid of enhanced CPC?

Google Ad's official reason is that enhanced CPC for shopping campaigns is over ten years old, and it has developed more advanced bidding strategies since then.

However, Google Ads is moving extremely rapidly towards full automation. It started when it sunsetted expanded text ads in favour of responsive search ads and continued when it began to push the heavily automated Performance Max campaigns.

My thoughts are that Google Ads wants customers to abandon the semi-automated enhanced CPC in favour of handing over full control to Google.

Automation isn't a bad thing by any stretch of the imagination. If you're a small company that wants to use paid advertising but can't commit several hours a day to tweaking campaigns, it can be a lifesaver.

However, it's about choice, and some users of Google Ads are worried that one day they'll log into the platform and find the option to manage their accounts with laser precision is gone.

What to do with your Google Shopping bids strategy

If you use enhanced CPC in your shopping campaigns, Google will switch you to manual bidding after October. If you're happy with this, you don't need to do anything.

Manual bidding gives you the most control over your Google Shopping account, but it can take time to manage all your products. If you're a large eCommerce store with hundreds or thousands of items for sale, it might not be an ideal situation.

Another option is Performance Max, which uses AI to optimise your bids and maximise the chances of conversions in a similar way to enhanced CPC.

One of the significant disadvantages of Performance Max is that it's very restrictive, and there aren't many elements to control. Although, to Google's credit, this is improving, and the company seems to be listening to customer feedback. If you're happy to trade control for reach, it might be an option.

Finally, Google Shopping offers some fully automated bidding strategies. These include:

• Target ROAS (return on ad spend). This strategy maximises your ROAS, with Google Ads adjusting your bids to get the best return on investment
• Maximise clicks. This strategy adjusts your bids to achieve the maximum number of clicks for the money you spend
• Maximise conversion value. This strategy adjusts your bids to maximise the value of conversions. However, bear in mind that this is a Smart Shopping-only bidding strategy, which will be superseded by the ever-ubiquitous Performance Max in September 2023

So, given that maximise conversion values is off the table, should you go for target ROAS or maximise clicks?

If you're looking for something to fill an enhanced CPC hole in your life, target ROAS is probably your best bet, as it focuses on conversions rather than brand awareness.

It's important to remember that with automated bidding, Google sets the bids on your behalf. You don't set your own bids like you would with enhanced CPC.

In conclusion: to automate or not to automate?

The frustrating thing about the sunsetting of enhanced CPC is that Google hasn't offered a similar substitute. Your choices are either to manually manage your bids or throw yourself wholeheartedly into automated bidding.

Imagine your car is due for a service, and the garage offers you a choice of two replacement vehicles: a push bike or a helicopter – neither of which is right for the job.

(While I'd love to pilot a helicopter, I'd not enjoy getting it parked at Xigen headquarters!)

The decision is ultimately yours to make. Manual bidding gives you more control at a cost of time. Automated bidding saves you time but a cost of control.

However, there is a third option. A paid advertising specialist will ensure you get the right clicks at the right price, and you'll always be in the loop. Who said you can't have the best of both worlds?

Send me a DM if you want to know how the Xigen PPC specialists can manage your bidding on your behalf.