Google has announced significant changes to its bidding strategy Enhanced CPC (eCPC), set to roll out in stages starting October 2024. Here’s what advertisers should be aware of:
October 2024: Enhanced CPC will no longer be available for new search and display ad campaigns.
March 2025: All existing campaigns using Enhanced CPC will automatically switch to manual CPC bidding.
How does eCPC work
Enhanced Cost-Per-Click (ECPC) is a bidding strategy designed to boost conversions from manual bidding while maintaining the advertiser’s cost-per-conversion. It works by automatically adjusting manual bids based on the likelihood of a conversion, using auction-time signals such as browser type, location, and time of day. ECPC aims to keep the average CPC below the maximum set by the advertiser, but may temporarily exceed this limit for high-potential auctions.
The system relies on historical patterns of clicks and conversions, making it crucial for advertisers to accurately set up conversion tracking. ECPC increases bids for auctions likely to lead to conversions and decreases them for less promising opportunities. For Search campaigns, it can also optimize for conversion value, allowing advertisers to prioritize high-value conversions.
In practice, eCPC might bid higher for auctions likely to lead to store visits for businesses with physical locations, or adjust bids based on potential cart value for e-commerce sites. This strategy offers a balance between manual control and automated optimization, providing a smart layer on top of manual bidding without the full automation of strategies like Target CPA or Target ROAS. By using ECPC, advertisers can potentially maximize their conversions while still maintaining control over their bidding strategy.
Enhanced CPC (eCPC) vs Manual CPC (mCPC)
Enhanced Cost-Per-Click (eCPC) and Manual CPC are two bidding strategies available in Google Ads, each offering different levels of control and automation. Manual CPC gives advertisers full control over their bids, allowing them to set specific bid amounts for each keyword or ad group. This strategy is ideal for advertisers who want granular control and have the time to actively manage their campaigns. On the other hand, eCPC is a hybrid approach that builds upon Manual CPC by adding a layer of automation. While still allowing advertisers to set maximum CPC bids, eCPC uses Google’s machine learning to adjust these bids in real-time based on the likelihood of a conversion. It aims to increase conversions while trying to maintain the average CPC below the set maximum. ECPC considers various factors such as user location, time of day, and browser type to make these bid adjustments. This strategy is particularly useful for advertisers who want to leverage Google’s data and machine learning capabilities while still maintaining a degree of manual control over their bidding. Both strategies have their merits, and the choice between them often depends on the advertiser’s goals, resources, and level of expertise in managing Google Ads campaigns.
Personal thoughts
I personally liked eCPC, because it allowed for a manual way with slight smart bidding support, to make sure you wont underbid too much. Brand campaigns can easily be run on eCPC in most cases as well as some side campaigns or campaigns where little is known about the keywords or potential performance. It gives a slower but safer start without having to deal with underbidding. But i can also understand that Google is taking eCPC off the board. It was never really a smart bidding solution, more of a mixed thing in between, and as most smart bidding solutions are more entry friendly (lesser requirements to start with) the need to eCPC is simply not there anymore i guess. As manual CPC will stay, Google will probably leave that as a backup option and go full automation in the future.