Enhanced CPC Bid Strategy (2022) - ECPC Google Ads Explained [Step-By-Step]

In this video on enhanced cpc bid strategy I will go over what ECPC is inside google ads, how to use it, and what alternatives there are for an enhanced cost-per-click bidding strategy.

0:00 Intro
0:14 What is Enhanced CPC Bid Strategy
0:53 History Of Enhanced CPC Bid Strategy
1:05 Should You Use Enhanced CPC Bid Strategy
1:56 How To Set Your Campaign To Enhanced CPC Bid Strategy

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Google Ads is an online advertising platform developed by Google, where advertisers bid to display brief advertisements, service offerings, product listings, or videos to web users. It can place ads both in the results of search engines like Google Search and on non-search websites, mobile apps, and videos.

About Enhanced CPC (ECPC)
Enhanced cost-per-click (ECPC) helps you get more conversions from manual bidding. ECPC works by automatically adjusting your manual bids for clicks that seem more or less likely to lead to a sale or conversion on your website. Unlike Target CPA and Target ROAS Smart Bidding, which automatically set bids based on your cost per conversion and return-on-ad-spend targets, ECPC will try to keep your average CPC below the max CPC you set (including bid adjustments) when optimizing for conversions.

For Search, Display, and Hotel campaigns, ECPC helps increase conversions while trying to keep your cost-per-conversion the same as you would get with manual bidding. For Shopping campaigns, ECPC helps increase conversions while trying to maintain the same overall spend. You can also set ECPC to optimize for conversion value, allowing you to prioritize high-value conversions and properly value different conversion actions. Optimizing for conversion value with ECPC is available for Search and Shopping campaigns. In this article, we’ll explain how ECPC works and how it can help you get more value for your ad budget.

Before you begin
To use Enhanced CPC with Search, Shopping, or Hotel campaigns, you’ll need to set up conversion tracking. You don’t need conversion tracking to use ECPC with Display campaigns, but conversions will help you learn whether your ads are effective.

How conversion tracking works with ECPC
The Google Ads system looks for patterns of clicks and conversions and compares them to your past results. If certain locations lead to more sales, for instance, it will know. You'll get optimal performance if you use conversion tracking with ECPC.

Make sure to review your conversion counting method for each conversion action to ensure it matches your goals. If you're tracking leads (such as sign-ups), you probably only want to count one conversion per ad click. If you're tracking sales, you probably want to count every conversion.

If you aren’t using conversion tracking
How ECPC works
Available as an optional feature with Manual CPC bidding, ECPC is a form of Smart Bidding that uses a wide range of auction-time signals such as browser, location, and time of day to tailor bids to the unique context of each search, but not to the full extent of other Smart Bidding strategies, such as Target CPA and Target ROAS.

ECPC looks for ad auctions that are more likely to lead to conversions, and then raises your max CPC bid (after applying any bid adjustments you've set) to compete harder for those clicks. If a click seems less likely to convert, Google Ads will lower your bid. ECPC will try to keep your average CPC below the max CPC you set (including bid adjustments), but may exceed your max CPC for short periods of time.
Example
Suppose you sell shoes both on your site and at a physical location, you’ve set your max CPC to $1 USD, and you have ECPC bidding turned on. If you set the value of store visit conversions to be higher than visits to your website, and Google Ads finds an auction that looks likely to lead someone to a store visit, it might set your bid to $1.70 USD for that auction. If another auction looks likely to lead to a website visit instead of a store visit, ECPC might lower your bid to $0.30 USD for that auction.