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Help with Enhanced CPC

Follower ✭ ✭ ☆
# 1
Follower ✭ ✭ ☆

Hello.

 

During the last days, I set my campaigns with "Focus on clicks, manual maximum CPC bidding. Enhanced CPC".

 

After that, I set a "Default Max. CPC" of $0.45.

 

The issues is that during the next days, I see many Keywords Bidding Higher. For example: $0.65

 

Is this correct? How is the logic of this "Enhanced" metric.

 

Thanks.

 

mat

1 Expert replyverified_user

Re: Help with Enhanced CPC

Google Employee
# 2
Google Employee

Hello Isadora,

 

Good question. 

 

What you are seeing is called overdelivery. Google may allow up to 20% more clicks in a day than your daily budget specifies.  Overdelivery can help make up for days when traffic is slow and your ads don't get as much exposure. However, in a given billing period, you're never charged more than the average number of days in a month (30.4) times your daily budget. Click the link to learn more about how costs are calculated

Re: Help with Enhanced CPC

Collaborator ✭ ✭ ✭
# 3
Collaborator ✭ ✭ ✭

Hello Isadora R,

 

What you are seeing is not overdelivery which is a concept about your Daily budget.

Your question is focused on comparing the MaxCPC and average CPC of an individual keyword.

 

Enhanced CPC can increase your manually set MaxCPC in some instances with at most 30% when the context matches a probability to get a conversion but .... $0.45 x 130 % = $0.585 which is lower than your observed $0.65

 

I think you may have enabled some other feature to increase the bid such as "Bid adjustments per location" or bid adjustments per schedule. For example if you also bid for "Increase bid by : 20%" if the location matches city = X, then the system can multiply your bid also by 120% for a visitor from that City.

 

Read more about Enhanced CPC

 

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

 

"ECPC does a similar job for your AdWords ads. It's a bidding feature that looks for ad auctions that are more likely to lead to sales for you, and then raises your max CPC bid up to 30 percent to compete harder for those clicks."

 

As a conclusion it is best to enable ECPC after your campaign has recorded a history of a few dozen conversions , otherwise ECPC algorightm has no historical data to make useful predictions.

I do not know why google allows advertisers to enable this option when the campaign has not recorded conversions, it should be available after a certain number of conversions like the Conversion Optimiser feature.