Recently Google has launched its latest addition to the bidding, “Enhanced CPC”. It has been launched on August 16th 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
