Every time a user performs a search in Google a process called an auction takes place to determine what ads will show and where they will appear in the search results. Google calculates an Ad Rank for all ads in the auction and those with the highest rank will generally be positioned highest among ads shown. Ad Rank is determined by six variables: bid amount, quality of the ad, ad rank thresholds, competition from other ads, context of the user’s search, and expected impact from ad extensions & other ad formats. In this series we will focus on the first variable and take a look at different bidding strategies.
Enhanced CPC (ECPC) is an optional automated feature of Manual CPC bidding. It works by automatically adjusting bids in auctions to target clicks that either seem more likely to lead to a conversion or, if set to optimize for conversion value, to target high-value conversions. ECPC will try to keep the average cost per conversion the same or less than manual bidding. In Shopping and Hotel campaigns this strategy works slightly differently than in Search and Display campaigns. Instead of cost per conversion, the aim is to maintain the same overall spend as manual bidding. Conversion tracking is required for Search, Shopping, and Hotel campaigns and recommended for Display campaigns. There are a couple differences between ECPC and other conversion-based smart bidding strategies. Though partially automated, ECPC gives the advertiser a level of manual control that they may prefer as compared to target CPA or target ROAS. ECPC works against a max set by the advertiser, as opposed to a target that is aimed for with the fully automated bidding strategies based on CPA, ROAS or budgets. It is unnecessary to set bid adjustments (except for mobile bids) with ECPC, unless you would like to bid more aggressively in certain situations.
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