Google Enhanced CPC

Recently Google has launched its latest addition to the bidding, “Enhanced CPC”. It has been launched on August 16^th 2010. This feature is available in the bidding options under settings tab.

What is it – Enhanced CPC will automatically adjust your max CPC based on the likely hood that a click can convert.

How it Works – For each auction “Enhanced CPC” will be calculated based on the following factors (Google might also considers other factors that we have no way of knowing them)

• Match Type of the keyword
• Relevancy between the search query and keyword
• Historical performance of the keyword, ad
• User location
• Possibility of that click to become a conversion

If a click is likely to convert then the "Enhanced CPC" system will increase the max CPC up to 30% and if a click is unlikely to convert then it will lower you max CPC. Initially the “Enhanced CPC” system will only modifies the bids in 50% of the auctions. Based on the performance of the modified bids when compared to the unmodified bids the percentage will further increase.

Is it Useful – Enhanced CPC = Full part of (Automatic Bidding) + Half part of (Conversion Optimizer)

Automatic Bidding works to maximize the clicks for the targeted budget. Conversion Optimizer works to generate conversions with a targeted CPA.

“Enhanced CPC” system has the complete functioning of Automatic Bidding and “generate conversions” part of Conversion Optimizer (“Enhanced CPC” doesn’t work on target CPA).

So if you want to give it a try, keep hawk eye on the CPCs for few days, as this new system works primarily on Automatic Bidding concept. This is the best time to test this feature for your campaigns. As the holiday season is approaching you can’t experiment during the season.

Happy Experimenting :-)

Thanks,

Arun

Retargeting - Make Customers Don't Forget About You

Re-targeting allows you to show ads to users who have visited your website as they browse the Web and left without making a conversion (purchase, sign up etc.,).

Most of the advertisers spend huge amount of dollars in bringing the customers to the website.
According to few surveys and reports on an average 98% of the visitors will leave the website without making an action/ conversion desired by you either it could be a purchase, sign up, download etc., Don't let your investment in those customers disappear! The users have already shown interest in your products/ offers by visiting your website but they might have left the website due to various reasons. So how to make sure that those visitors don't forget about your website/ products/ offers.

In this case Re-targeting helps
Re-targeting helps to show your ads to visitors after they have left your site. Your ads will appear to them as they browse the web. Re-targeting works mainly based on the cookies. The re-targeting ads are not pop-ups, these are advertisements that customers would normally see as they visit the web pages.
You appear to them again and again in the right place at the right time.
Think of it as following a customer out the front door of your store and keep on showing him about your store which makes him to think,
a) Oh I have to purchase those products which I have thought to buy earlier
b) It seems this store has a brand value as it appears everywhere I go. (Its a myth but the truth is we are targeting the user specifically so he always see our ad)
c) I have visited this website once they sounds high/ they are not good, but again why does this ad appears through out the web, I think we need to check it once again.

You will stay top of mind and customers will come back to your site and purchase. Some studies suggest that you need seven contacts with a customer to make a sale. Re-targeting is an invaluable tool for developing that relationship with prospects, and turn them into customers.

Google is offering this feature in Ad words. Check the screen shot

Few other channels such as Veruta, Fetch back is also offering Re-targeting.

Thanks
A