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Enhanced CPC

Short Summary:-


I use Enhanced CPC little cautiously because of a small risk factor that involves higher Cost per Acquisition at times, but keep on experimenting this feature every time so as to see if it’s in the benefit of my clients or not. I must admit that many of my campaigns have really gained success using Enhanced CPC and resulted in much higher conversion rate. I would recommend giving it a try to achieve good ROI.



What is Enhanced CPC?

I think Enhanced CPC is little advanced feature and if used effectively can surely increase the conversion rates for your clients just like me. I have been using this great AdWords feature for some time and have found this pretty interesting to use. Good part is that Adwords system will dynamically choose whether to decrease your bid during that particular time in the auction process or increase the bid so that converting position is achieved, which could boost up the conversion rate.

Why use Enhanced CPC?

I've observed that the main benefit of Enhanced CPC is your ROI. Many of my clients have benefitted from this feature. Another benefit includes higher CTR. I have seen improvement in the CTR down the line if observed carefully when this feature was disabled, compared with when this feature was turned on. And automatically if your account keeps on delivering higher CTR for majority of the keywords, it impacts the total Quality Score of your account and gradually assists in the improvement.

One of my client was getting conversion at a steady rate, but not much higher. I read about this feature on Adwords help center and thought of implementing it in one of the campaigns only to see what would happen. Within 14 days, I saw conversions started pouring in much faster compared to the past. Conversion rate showed improvement of nearly 25% when I compared it with historical data. I was really excited and turned on the feature in another couple of campaigns to see conversions getting increased at fairly good CPA. Now I keep on using this feature for almost every client so that greater ROI is achieved.


When to use Enhanced CPC?

I started using Enhanced CPC when I observed that my campaigns were getting conversion at a constant rate every month. In order to improve the conversion rate for my clients, I generally prefer this over normal CPC bidding strategy. I generally consider data for the past 3-4 months and see if the conversions have seen any major improvement or not. After looking at the data in terms of other matrices also which includes CTR, Quality Score, number of clicks etc..., I decide whether to opt in for Enhanced CPC or not. I do take special care in considering the Avg. CPC of the campaign before going for this advanced feature. If I find the Avg. CPC to be higher with low conversion rate, then first I optimize the campaign to reduce the Avg. CPC and then go for Enhanced CPC so that I don’t end up with a situation where I have low conversion with higher Avg. CPC. But still I find this advanced feature a great help.

Talking personally, this feature has proven success for majority of my clients who are from different industries like network consultation services, medical training institutes, tree services company etc... Although I must admit that I didn’t have much success with couple of my clients, where I had to turn off this feature, but that doesn’t mean that it is not worth enough to experiment. All it depends upon how much your client is willing to spend on Adwords and whether you have the space to try this because as per Adwords guidelines, Enhanced CPC can increase the max CPC up to 30%, so little care and budget distribution does play a major role.


Tips on using Enhanced CPC


  • Look at your past data of your campaigns where they have performed optimally well in terms of conversions or not. Then think of using this feature.


  • Separating the high converting ad groups from the lower ones into different campaigns and then implementing Enhanced CPC on high converting ad groups’ campaign might boost up your conversion rate.


  • Sometimes you might feel that by opting into this feature is increasing the Avg. CPC, but little patience is required because AdWords will actually settle down the bids in the beginning and then conversion will increase from later point, which I have observed. However if still there is a feeling that Conversions are not improving and Avg. CPC is increasing for longer time, then Enhanced CPC can be turned off lately.




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Posted by Pankaj Sabharwal

about Pankaj Sabharwal

I am a Google AdWords lover. Always excited to learn something new about it. I am always engaged with the AdWords Community and love to interact and solve the problems to the best of my knowledge if I can.

February 2013

I always used to only use enhanced CPC, but I have to say conversion optimiser has proved to deliver better results for me.

As a rule of thumb I always wait at least 1 - 2 months depending on the client's budget and their conversions before switching over to conversion optimiser.


I let this run for at least month and then compare results.


If this is not to my liking I will then switch over to enhanced CPC and tweak over settings manually like using new enhanced campaign features by increasing and decreasing budget depending on performance based data when it comes to locations, time of day and day itself as well as ad group level performance.