Official Launch of Google AdWords Enhanced CPC

Over the past few months, a new feature called Enhanced CPC bidding has slowly been appearing in Google AdWords campaign settings. Today, the new automated bidding feature was rolled out across the AdWords system to all advertisers.

What is Enhanced CPC Bidding?

Enhanced CPC is a new automated bidding tool that takes into account your campaign’s historical conversion history and automatically adjusts your keywords Max CPC bids based on the probability that your ad will convert, due to their conversion pattern in the past. This new tool will help to decrease your campaign’s overall cost-per-action and result in campaign managers spending less time manually adjusting CPC bids.

The new bidding system also has the capability to recognize different variations of converting terms, and actual converting keywords within keyphrases. For example, let’s say you bid on the keyphrase plush puppies. The system recognizes that when the word plush has triggered an ad in the past within other keyphrase variations, it has converted. Therefore, any keyphrases variation (i.e. plush black corgi puppies) containing the world plush will trigger the system to adjust your CPC bids in order to obtain a conversion for the variation containing your historically well-converting keyword.

How to Use Enhanced CPC Bidding?

Because Enhanced CPC bidding is focused around increasing conversions, conversion tracking must be enabled within the campaigns you want to enable Enhanced CPC bidding.

To enable Enhanced CPC Bidding:

  • Log in to your AdWords Account.
  • Click on the Campaigns tab and then click on the campaign in which you would like to enable Enhanced CPC bidding.
  • Within the campaign, click on the Settings tab.
  • Scroll down to the Bidding and budget area of the campaign settings page.
  • Next to Bidding option, click edit.
  • Next, chose either manual bidding or automatic bidding to try to maximize clicks for your target budget. Either of these options can be combined with Enhanced CPC.
  • Check off the box next to Use my conversion tracking data and bids to optimize for conversions under Enhanced CPC.
  • Click Save.

What is the difference between Enhanced CPC and Conversion Optimizer?

Both Conversion Optimizer and Enhanced CPC bidding tools aim at increasing or improving a campaign’s ROI. Both tools calculate a predicted conversion rate for each ad auction.

The big difference between the two is how Enhanced CPC works with the Max CPC bids that you set at the keyword level and with all settings of your current campaign. You can then optimize and change the Max CPC’s as much as you like. Conversion Optimizer only allows bidding at the AdGroup level.

With Enhanced CPC, your campaigns also do not need to convert at least 15 times in 30 days, which is a requirement in order to use Conversion Optimizer.

Has Enhanced CPC increased conversions in your campaigns? We’d love to hear your feedback about the new feature!

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