Google offers various bidding models for your ad campaigns—like CPC, CPM, and CPA. The latest model is Enhanced Cost-Per-Click (ECPC). But how do you decide which is this right bidding model for your campaign?
To understand this first let’s look at what exactly ECPC means.
Google’s support blog for Adwords explains Enhanced cost-per-click (ECPC) is a bidding feature that raises your bid for clicks that seem more likely to lead to a sale or conversion on your website. That helps you get more value from your ad budget.”
How it Works: Enhanced CPC could be described as an ROI turbocharge setting for your existing Max CPC campaigns. However if your campaign is very recent or doesn’t have sufficient historical/ conversation data this might not be the right option for you. Instead focus on basic features to improve and optimize your campaign. Enhanced CPC will increase your max CPC bid by up to 30% if the Adwords system interprets it potentially favorable to your campaign. It can also reduce your max CPC by any amount, even more than 30 percent if the system determines a conversion is less likely to happen.
How is the system decides which auction is promising? To determine which auction would most likely bring a sale or conversion, the Adword system compares the pattern of clicks and conversion from the recent past. The system also considers the historical conversion data, geographic location, time and more.
How do I enable ECPC in my campaign? You can find this option in the settings tab of your campaign. In creating a new campaign, choose the bidding strategy by simply clicking the checkbox to enable the ECPC strategy. If the campaign is already created, you can find the option in the settings tab.
ECPC Vs Conversion Optimizer Both ECPC and Conversion optimizer work in similar fashion except one key difference: ECPC mechanism works on the max CPC bid you set, never going more than 30 percent over it. Whereas Conversion Optimizer require a CPA bid or a max CPA bid.
|Works with all your campaign settings and max CPC bids||Lets you set either a target CPA or max CPA|
|Can raise bids by up to 30 percent or decrese your bid (even more than 30%)||Give you full control to set your CPC bid for each auction|
|Works with third-party bidding systems||May not work with some API-based bid management solutions|
Choosing between ECPC and CPA totally depends upon your campaign needs and on the level of control you would like to have on your bidding structure.