Changes To Enhanced CPC Bidding
Starting June, AdWords will be rolling out new changes to enhanced CPC Bidding method (ECPC). You must have noticed the notification under your AdWords interface.
In this article, you will understand what changes are to be implemented and how new ECPC changes can affect the performance of your account.
Understand New changes to ECPC bidding
As you know, ECPC is automatic bidding strategy which aims to bring you potential clicks. When AdWords algorithm sees click which is more likely to convert, ECPC bidding strategy increases your keywords bids upto 30%. To adjust bids for your keywords Google algorithm consider user’s device, user location, browser and time of the day. ECPC words on keywords manual bids, you still can adjust your keywords bids any time.
The change that is coming to ECPC bidding is to remove 30% bid increase cap. According to Google, 30% cap removal is to help advertisers gain more conversions. But Advertisers with low conversion stats and advertiser with strict CPC KPIs should be careful with new ECPC. New changes of removing 30% cap will not adjust bids based on device.
According to Google, ECPC bidding will try to keep actual average CPC below max CPC bids overtime.
If you are running ECPC and it is working well for you, we recommend to test ECPC for some time and see how new changes are impacting average CPC, conversion rate and impression share.
ECPC uses historical conversion stats to adjust bids automatically. If you do not use conversion tracking or if conversion tracking is not set accurately, you should not risk performance implementing ECPC. It is highly recommended to use ECPC when conversion tracking is set properly and when campaign has enough conversion stats for Google’s algorithm to consider. Also ECPC is by default selected when creating new search and display campaigns. It is recommended to uncheck ECPC for new campaigns.
Visit AdWords Help Center – About Enhanced CPC (ECPC) for more information.