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Enhanced CPC bids - Best Practices

Community Manager
# 1
Community Manager
How, when and why do you use enhanced CPC bids?
What are the benefits? What are the steps to start using it now? 
Are there any issues some of you faced? Do any of you have some lingering questions before you start using this feature? 

 


This popular discussion was copied from the former Help Forum.

 

Our users and TCs shared the following best pratices:

 

Pankaj: 

Awesome start already!
Let me share my thoughts about this advanced feature enhanced CPC here...
I find this feature quite interesting to work with. According to Adwords system by enabling this feature, advertisers can enjoy the enhanced conversion rates in their Adwords Account. I have personally felt the difference while working with this feature. 
Important thing to analyse for this is that Adwords system looks at your historical conversion rate and tries to either increase the bid or decrease the bid so that your ad is shown on the most converting position. Of course outside factors do matters like daily budget, ad scheduling, bid multipliers etc...
Many of advertisers have found that Enhanced CPC is costlier to deal with..They think that Google tries to increase the bid in order to have more spend from their pockets. But the important angle to look at it is that if by enhanced CPC, your Conversion Rate is improving, then why not spend more? Another thing is the account optimization. This feature may prove a big success for one of your campaign but may not be good enough for other. But that doesn't mean that it is not worth enough to experiment this feature. All the factors are controlled by your historical conversions. So if you had good conversions in the past, you can definitely get a jump in your Conversion Rate.
Still my point of view would be that this feature should be tested once you have enough Conversions in the past. That will help Adwords to optimize your bids at optimum level with Enhanced CPC so that the Conversion Rate is improved down the line. ts like a choco lava cake which can be enjoyed the most if you have enough chocolate (conversions) inside Smiley Happy
Thanks all!
Pankaj



Scott: 
I'll get us kick-started by giving a bit of background on the Enhanced CPC bid setting. The feature focuses on achieving more conversions by dynamically lowering or raising your CPC bids while taking your maximum CPC into consideration, the setting can increase your CPC bid past the maximum CPC bid but by no more than 30%. These bids are calculated by analysing previous historical feedback generated within the account, raising bids when there is a higher chance to convert while reducing bids when there is less opportunity.
Some additional points that Enhanced CPC is capable of paraphrased from the official Blogspot are:
+ Adjusting a bid depending on how well a particular search term or placement has converted in the past.
+ Detecting additional details such as a potential client's location, language, browser, etc and taking action depending on how these are likely to impact the chance of generating a conversion.
+ Identifying when specific words within a keyword convert well and then adjusting bids accordingly when they are used in search term variations.
In theory nothing should go wrong by using Enhanced CPC as the feature is designed to work on the best performing parts of your account with the intention on improving total conversions, at the very worst nothing should change at all. I have to admit I have had one bad experience using it with a client though, the total conversions dropped and the cost per conversion increased. I don't want to put people off trying it though as this may have purely been a coincidence, I'm just putting it down to that though as the campaign had run well for a long period up until that point and enabling Enhanced CPC was the only change at the time.
If you have historical feedback within your account with regards to conversions then I would definitely suggest trying it out to boost those conversions and your return on investment.
Kind regards,
Scott
1 Expert replyverified_user

Re: Enhanced CPC bids - Best Practices

Top Contributor
# 2
Top Contributor

Hi Mini,

 

Thanks for posting this from the old forum.

 

I have extended my thoughts by writing on Enhanced CPC in Adwords Wiki. Community can reach out to this article here:-

Enhanced CPC

 

Best

Pankaj

Re: Enhanced CPC bids - Best Practices

[ Edited ]
Jun
Follower ✭ ☆ ☆
# 3
Jun
Follower ✭ ☆ ☆

Really good post Mini, and good follow up by Pankaj's post on enhanced CPC.

 

I'd like to add that this works best when you have tailored and optimized your landing page and ad text to your satisfaction.  If you are still testing different landing pages and the ad text messaging there will be too many variables at work to accurately measure if enhanced CPC bidding is beneficial for your campaign or not.

 

Re: Enhanced CPC bids - Best Practices

Follower ✭ ✭ ☆
# 4
Follower ✭ ✭ ☆
Nice post guys. I am going to try this feature and let you know.