Google Launches Enhanced CPC To Boost Adwords ROI
By Anna Johnson on August 24th, 2010Google has introduced ‘Enhanced CPC’ to its Google Adwords paid search product. Enhanced CPC automatically adjusts the maximum you’re willing to bid on a given keyword, based on how likely your ad will convert i.e. elicit a click-through.
Enhanced CPC looks at your campaign’s historical conversion tracking data to automatically adjust your Max CPC bid based on the probability of your ad converting into a click. As a result, you should get more conversions, whilst maintaining or reducing your overall cost-per-acquisition (CPA). You should also end up spending less time manually adjusting your Max CPC bids.
Some of the features of Enhanced CPC include the ability to:
- Adjust your bid based on how well a particular search or display network partner site in the Google network has converted for you in the past;
- Recognize when specific words within a keyword convert well and adjust your bid when users search on variations of these terms; and
- Detect attributes such as the user’s location, language settings, browser, and operating system and analyze how these attributes may impact the likelihood of your ad converting.
Here’s a video from Google explaining how Enhanced CPC works:
To use Enhanced CPC, you must enable Conversion Tracking for your Adwords campaigns. If you’re already using Conversion Tracking, just go to the ‘Bidding and Budgeting’ section of the settings tab for your campaign, and select the checkbox under ‘Enhanced CPC.’
Google says that, right now, campaigns using Enhanced CPC cannot currently be modified using AdWords Editor. Google is currently working to ensure compatibility in the near future.
