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Google announce new Enhanced CPC option within their AdWords Pay Per Click platform, helping advertisers automatically vary bids for high converting phrases.
Enhanced CPC is a brand new option within Google AdWords. Like many of their recent developments, this is designed to help account holders get more from their budgets. In this instance though, it is through manipulation of bid process for campaign keywords.
That probably sounds a little ominous. Handing over power to Google to bid on the price you pay for each click on their PPC platform. But it is actually reasonably straightforward and safe too; yep, a pretty good idea all round.
In essence, if you choose to switch on the Enhanced CPC filter within Google AdWords, it will automatically adjust bid levels depending on conversion rates. So if one key phrase is converting better than others, Google will automatically increase the bid price if it will improve your position within the rankings. In turn this should lead to you receiving more clicks and, subsequently, improved conversions too.
Your initial bid price can only be adjusted by 30% either way, so you shouldn’t find that your budget is adversely affected by huge increases. Where one bid goes up, another will go down. This will just help to ensure that parity is maintained.
Still not sure what this is all about? Well, here’s a quick example:
You are targeting two phrases in a campaign. The first is ‘London Antique Dealers’ and the second is ‘London Antique Store‘. You are bidding £0.60 for both; however ‘Dealers‘ has a much higher conversion rate than ‘Store‘.
If you switch on the Enhanced CPC option, Google may automatically change the bid of the ‘Dealers‘ keyword to maximise conversions. It could choose to increase the amount paid up to a maximum of £0.78 (30% higher than the original). Bids will be altered in direct relation to the likelihood of generating conversions, so it might only increase by a few pence or Google could choose to use the full 30%.
This process is designed to help you to increase ROI and improve bid management on AdWords. You will need to have Conversion Tracking activated first to access this option. To set it up you just need to go to Bidding and Budgeting and select Enhanced CPC – Google will do the rest. As with most AdWords tools, if you find it doesn’t work for you it can be instantly switched off simply by unchecking the box.
For more information visit the Inside AdWords Blog.
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