Cost Per Click or CPC is the average cost per click on the advertisement, that is how much you are spending on the Ads as an advertiser. Cost-Per-Click can be either Manual Cost per click or another one is Enhanced Cost-Per-Click. In this article we will look forward to what exactly is Enhanced CPC, How does it work, how to enable and why should you use it
We know about Manual CPC, it is where you set your bids at keyword level or group level yourself, choosing a maximum amount you want to pay for the click. This was the common old Google AdWords Consultant which is now known as Google Adsense, google trying to enhance it and is now known to be ECPC(Enhanced Cost Per Click).
Enhanced Cost Per Click or ECPC is like an older brother of manual CPC. ECPC allows Google to use some artificial intelligence for you to effectively run your campaign. It is a type of Smart Bidding, where Google is the one that makes automatic adjustments to the bids you’ve put, therefore you don’t need to do it all manually. ECPC could adjust your bids up to 30% higher or lower than your maximum CPC bid.
ECPC is like manual CPC but google will use their auction time bidding signals from your campaign data to predict whether or not a click is more likely to end in a conversion. Essentially it can raise and lower your bids beyond the limits you set at the keyword level depending on how likely they are to convert. So if you’re okay if you got a campaign with low conversion volume then Enhanced Cost-Per-Click or ECPC will probably increase your Cost-Per-Click and keep your conversions the same as well.
In an ECPC campaign, your click costs are going to be higher than the max CPC you’ve set. It’s usually seen that when using ECPC, the keyword average CPC’s usually always come in higher than the max I’ve set. Google says ECPC can lower bids if a keyword is less likely to convert too, but in my experience, they prefer to raise the bids in ECPC.
It’s like a bridge to smart bidding. It allows you to have a significant amount of control while also allowing the Google Ads AI to do its thing too, a perfect solution?. Well, not always. It comes with the same caveats of smart bidding, too few conversions = not enough good data so you could find that ECPC could increase your bids and get nothing in return.
The main target of ECPC is to improve the overall or total effectiveness of your PPC and sum up the revenue by adjusting your bids in Google Ads automatically. It assimilates its adjustments based on your campaign, according to what is observed from it. You should turn on the conversion tracking, so that the ECPC may work well.
This is because conversions are the key to how Google will rank your bids accordingly. Which keywords operate considerable conversions and the bids on them all is observed by Google. By increasing the bids, it maximizes the ads’ productiveness, causing them to overall generate more and more revenue. For ECPC to work up you must build some history in your account because it not just analyzes the current biddings but also compares them with the previous ones. This is the main factor in how Enhanced Cost-Per-Click works.
How to Turn On ECPC?
Turning or enabling ECPC for your campaign is a very easy task; you just need to follow the simple process below to enable it.
Here are some steps you can follow to easily turn Enhanced CPC on.
Step 1: Go to the “campaigns” tab, and click the name of the campaign you want to work with.
Step 2: Now go to the “settings” tab and look for the bid strategy section and click ‘edit’.
Step 3: Now finally you need to go to advanced options and click the checkbox for “Enable Enhanced CPC”
You have to follow the above process step by step again, for each different campaign where you are willing to enable Enhanced CPC. One thing to be kept in mind is that once you have enabled Enhanced CPC then Google will automatically adjust/set your ad rotation settings to optimize for conversions.
You can gain many benefits by using an Enhanced Cost-Per-Click bidding strategy. Enhanced CPC gives you the freedom to control or manually set your bids, not just that but also the benefits of Google Ads Smart Bidding, which optimizes your bids for conversions.
The main reason for choosing Enhanced CPC is because you want more conversions from your ad, also it gives you more control over bidding within a budget. This gives you the most control of any of the automated strategies, that’s eventually why Enhanced CPC exists. Hope this article helped you out for knowing the best information about Enhanced CPC.
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