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Boost your Return on Investment with AdWords Enhanced Cost-Per-Click Bidding

[ Edited ]
Google Employee
# 1
Google Employee

Enhanced Cost-Per-Click a bidding feature that dynamically adjusts your bids based on the probability that a conversion will result from the click. Using Enhanced CPC bidding is a great way to make sure you are getting the most out of your budget.

One note before we continue: In order for Enhanced Cost-Per-Click bidding to be an eligible campaign setting, Conversion Tracking must be enabled. For more on setting up Conversion Tracking, check out this article.

Each time an ad is eligible to appear, Enhanced CPC will estimate the likelihood of a conversion. Based on this likelihood, the Enhanced CPC feature will adjust bids dynamically down or up.

The Enhanced CPC feature will increase your maximum Cost-Per-Click bid up to 30% when it recognizes a good opportunity for a conversion. By the same token, if a click is not likely to lead to a conversion, Enhanced CPC will lower your maximum Cost-Per-Click bid, even beyond 30%, resulting in lower costs for  clicks unlikely to convert.

For more about Enhanced CPC bidding, including implementation instructions, please refer to this resource.


Wishing you many Conversions and a stout ROI,

Kathryn
The Google AdWords Team

2 Expert replyverified_user
1 ACCEPTED SOLUTION

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by Zee (Community Manager)
September 2015

Re: Boost your Return on Investment with AdWords Enhanced Cost-Per-Click Bidding

Google Employee
# 4
Google Employee

Hi Tom and Tabish,

 

Thanks for checking out the post. Glad you found it interesting!

 

That's a great question, Tabish. The Enhanced CPC option analyzes historical conversion data to estimate the conversion rate for each auction.


If Enhanced CPC estimates a particular auction is more likely to convert than the average auction for that keyword, it increases the Max. CPC bid. Conversely, if it estimates a particular auction has a relatively low chance of resulting in a conversion, it lowers the bid to reduce the cost of a potential click from that auction.

 

Therefore, even more than looking at pure click performance or pure conversion performance, Enhanced CPC is actually comparing keyword data versus the auction itself to try to find the best opportunities.

 

At the end of the day, it's important to keep in mind that ECPC takes a "Do No Harm" approach: it continually monitors and optimizes its performance by keeping a portion of your traffic with your regular (not enhanced) Max CPC bids. If it detects that it's hurting your campaign performance, Enhanced CPC will automatically reduce its impact.

 

Let me know if you have any questions, and thanks again for reading.

 

Warm regards,

 

Kathryn

The Google AdWords Team

 

View solution in original post

Re: Boost your Return on Investment with AdWords Enhanced Cost-Per-Click Bidding

Top Contributor
# 2
Top Contributor

Thanks for this great info!

 

-Tom

Tommy Sands, AdWords Top Contributor | Community Profile | Twitter | Philly Marketing Labs
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer.’

Re: Boost your Return on Investment with AdWords Enhanced Cost-Per-Click Bidding

Follower ✭ ✭ ✭
# 3
Follower ✭ ✭ ✭

a question here

 

lets say conversion optimizer is set it will act of the basis of recorded data. so if we use ehanced CPC, will it be focusing only on keywords which converted before or also the low performing but high opporunity keywords?

 

an example will be

 

Add URL kw have 10 conversions--conv rate of 15%


while seo optimisation have 3 --Conv rate of 50%--but low click kw

 

Thanks

 

Tabish

Marked as Best Answer.
Solution
Accepted by Zee (Community Manager)
September 2015

Re: Boost your Return on Investment with AdWords Enhanced Cost-Per-Click Bidding

Google Employee
# 4
Google Employee

Hi Tom and Tabish,

 

Thanks for checking out the post. Glad you found it interesting!

 

That's a great question, Tabish. The Enhanced CPC option analyzes historical conversion data to estimate the conversion rate for each auction.


If Enhanced CPC estimates a particular auction is more likely to convert than the average auction for that keyword, it increases the Max. CPC bid. Conversely, if it estimates a particular auction has a relatively low chance of resulting in a conversion, it lowers the bid to reduce the cost of a potential click from that auction.

 

Therefore, even more than looking at pure click performance or pure conversion performance, Enhanced CPC is actually comparing keyword data versus the auction itself to try to find the best opportunities.

 

At the end of the day, it's important to keep in mind that ECPC takes a "Do No Harm" approach: it continually monitors and optimizes its performance by keeping a portion of your traffic with your regular (not enhanced) Max CPC bids. If it detects that it's hurting your campaign performance, Enhanced CPC will automatically reduce its impact.

 

Let me know if you have any questions, and thanks again for reading.

 

Warm regards,

 

Kathryn

The Google AdWords Team

 

Re: Boost your Return on Investment with AdWords Enhanced Cost-Per-Click Bidding

Follower ✭ ✭ ✭
# 5
Follower ✭ ✭ ✭

very useful information, had this question for long Smiley Happy

 

Thanks

Re: Boost your Return on Investment with AdWords Enhanced Cost-Per-Cli

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭

This is really very helpful... Thankxx for sharing this with us.

 

Re: Boost your Return on Investment with AdWords Enhanced Cost-Per-Cli

Visitor ✭ ✭ ✭
# 7
Visitor ✭ ✭ ✭
Thanks .. great details.

Re: Boost your Return on Investment with AdWords Enhanced Cost-Per-Cli

Visitor ✭ ✭ ✭
# 8
Visitor ✭ ✭ ✭
Tabish,

Thanks for explaining all of that to us. It's very useful and I will definitely use it.

Boost your Return on Investment with AdWords Enhanced Cost-Per-Click Bidding

Visitor ✭ ✭ ✭
# 9
Visitor ✭ ✭ ✭

Hi

 

I have set up ECPC and have removed all bid adjustments. However, when trying to enable ECPC I only get this message "To use this strategy, remove the strategies currently applied to your ad groups"

 

Thank you in advance for any help offered.

 

Boost your Return on Investment with AdWords Enhanced Cost-Per-Click Bidding

Participant ✭ ✭ ✭
# 10
Participant ✭ ✭ ✭

It is likely that you have a bidding strategy applied to an individual keyword. Any of those will need to be cleared before eCPC can be used. 

 

Also, eCPC does not mean you can remove your bids.  It is designed to "boost" the Max CPC bids you set, when it is more likely to result in a conversion.