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Enhanced CPC

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# 1
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Hi, I need to choose the right bid strategy for conversions to my watches site and i have gone through all types of flexible bid strategies from Google Help. I haven't understand how Enhanced CPC helps me to get conversions. How it will convert an Ad click into conversion? When user clicks your ad, does it works to make that click into conversion? Or is there any list of saved users who tried to purchase watches? when the list of those users search for watches in Google then my ad will appear to them which probably helps to make a purchase?

 

"It raises your bids in situations that seem more likely to lead to a sale or other conversion on your website, and lowers your bids for situations that seem less likely to lead to a conversion"

 

In the above quoted sentence, What are the situations that more likely to sale? Does it means Enhanced CPC will charge +30% of my bid if a click converted to sale? & if the user has less activity on my website and no purchase then it will charge less amount?

 

I am very confused with how Enhanced CPC helps to get conversion? It would be great, if any one explain me more briefly in regarding this?

 

Thanks in advance.

 

3 Expert replyverified_user
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Accepted by topic author James F
September 2015

Re: Enhanced CPC

Top Contributor
# 5
Top Contributor

Google describes this feature as ‘‘ROI turbocharge”, and even practically it can work wonders if you understand it better and use it at the right time.  Right time means let the account have enough history and conversions before you use this feature. This way AdWords will be able to understand your campaigns past performance, click patters, and conversions better. As a result, you will have its benefits. 

 

You already excellent answers describing how it works. Hope it clarifies your doubts. Otherwise, I would advise you to read this article http://adwords.blogspot.in/2010/08/increase-roi-conversions-with-enhanced.html 

 

Thanks
Ratan

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About Me: Community Profile | Ratan Jha INC. | Splashsys Webtech
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Re: Enhanced CPC

Rising Star
# 2
Rising Star
Hi,

Good question. In ECPC google says

"Google AdWords looks for patterns of clicks and conversions and compares them to your past results. If certain search or keyword combinations generate more conversions, it will identify these and modify your bids in order to get you more exposure and improve your positioning when those keyword combinations are identified."

Well the problem is how this exactly works. Unfortunately there is no clear cut answer for this question. This is majorly system will decide and u will have less control over how this actually works inside.

also this can have negative and positive results on your campaigns.

in contrast with its sibling feature (the Conversion Optimizer), it’s not targeting a specific cost-per-acquisition (CPA) and could therefore definitely cause a spike in your costs-per-conversion, in effect exceeding your CPA goal.

Re: Enhanced CPC

Explorer ✭ ✭ ☆
# 3
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Enhanced CPC depends on your past results. When it "sees" some query that converted before in higher % than other, it bids higher so you get that user on your site.

More details here:
https://support.google.com/adwords/answer/2464964?hl=en

Re: Enhanced CPC

Top Contributor
# 4
Top Contributor

Hi James,

 

As pointed above, it really depends upon how your account has been performing in the past and based on various statistics and different signals, AdWords might increase your bid during the ad auction OR might decrease it depending upon whether the click is likely to convert or not.

 

In nut shell, remember that AdWords is an advertising platform which provides various strategies, bidding features for the advertisers and it's the advertisers who need to find out the real combination which works for them based on how you optimize the account.

 

I would also suggest you to download this PDF and understand how bidding works, which might help you to further optimize your account strategically: http://services.google.com/fh/files/blogs/google-automated-bidding-best-practices.pdf

 

My 2 cents!

Pankaj

Marked as Best Answer.
Solution
Accepted by topic author James F
September 2015

Re: Enhanced CPC

Top Contributor
# 5
Top Contributor

Google describes this feature as ‘‘ROI turbocharge”, and even practically it can work wonders if you understand it better and use it at the right time.  Right time means let the account have enough history and conversions before you use this feature. This way AdWords will be able to understand your campaigns past performance, click patters, and conversions better. As a result, you will have its benefits. 

 

You already excellent answers describing how it works. Hope it clarifies your doubts. Otherwise, I would advise you to read this article http://adwords.blogspot.in/2010/08/increase-roi-conversions-with-enhanced.html 

 

Thanks
Ratan

Join me on Google+


About Me: Community Profile | Ratan Jha INC. | Splashsys Webtech
If this or any other post solved your question, do not hesitate to accept it as the solution.

Re: Enhanced CPC

Follower ✭ ✭ ✭
# 6
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Hello James,
Enhanced CPC work on campaign history & if you start fresh campaign than it work on Google search trend data. So better way to use enhanced CPC, always use in old campaigns not in fresh campaigns.
In theory, enabling Enhanced CPC bidding should either only have positive effects throughout the campaigns or a neutral effect.

Thanks,
Jitender

Re: Enhanced CPC

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# 7
Follower ✭ ☆ ☆
Is there any better to way to get conversions for fresh campaign?

Re: Enhanced CPC

Follower ✭ ✭ ✭
# 8
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James, Following thing you should remember when you start fresh campaigns:
You should understand the market & competitor of your domain. When you understand competitor than find data from similar Web & also analyze the top keywords according to that data which match your market .
When you find top keywords of your market then take help Google Keywords tool & prepare a good campaign set up with broad & broad match modifier keywords.
After 2 weeks check your search term & add keywords in exact & phrase match & add negative.
Let me know if you need any help on it.
Thanks,
Jitender