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Video Trancript: Enhanced CPC (ECPC) vs Manual CPC in Google Ads (AdWords)
I know some of you out there when running a Google Apps PPC campaign you probably want a ton of control, so you head over to manual CPC bidding because it gives you the most control of any bidding strategy out there, but what about ECPC, Enhanced CPC bidding. Well, in this video we’re going to take a look at the advantages and disadvantages of ECPC bidding when to use it, when not to use it and shortcomings of this strategy and of course the benefits of using an e CPC bidding strategy.
Two, so you’re going to learn all about that in terms of manual bidding and more coming up.
Hey guys, Darren Taylor of the bigmarketer.com hit and my job is to make you a better market. Now that sounds like your streets you should consider subscribing to this channel. In this video what we’re looking at today is manual CPC bidding and more importantly the older brother of basic manual CPC bidding which is Enhanced CPC bidding strategies.
First of all, it makes sense that we’re on the same page when it comes to bidding strategies and you understand what I mean by a manual CPC strategy. Manual CPC is where you set your bids, a keyword level or at group level yourself. You choose the maximum amounts you want to pay for a click. This is good old-fashioned Google AdWords as it’s called Google Ads now and this is what Google AdWords first came out with. It’s something that allows you to have full control over your marketing.
Now if you follow my channel, you will know Google are moving in a different direction and want to bring a lot more artificial intelligence and automation to campaigns which is why Enhance CPC was one of the first signals of doing that. What is Enhanced CPC? Enhanced CPC is like the older brother of manual basic CPC.
What it does? It allows Google to use some artificial intelligence in order for you to effectively run your campaigns. What I mean by that is, you set your bids at keyword level as you normally would, if you enable enhance CPC, what Google will do is use all of their data points at the point of auction in order to raise or lower bids depending on whether or not they’re likely to convert for your campaigns.
One caveat to throw in there though is that I’ve never actually seen an ECPC campaign come in with an on par or lower average CPC than your max set campaign CPC. What you’ll probably find is that with an ECPC campaign, your click costs are going to be higher than the max CPC you have set. Just throw them out there just so you know from an expectation point of view what to expect from an ECPC campaign, but anyway, parking that aside ECPC can be very good for campaigns.
Now of course, if you’re giving Google some more data points to use in order to optimize your campaigns then it’s only usually a good thing, if for example you’re bidding on a keyword and you set your bids at a certain level and Google knows from the auction in real-time whether it’s by the user’s device, whether it’s their location, whether it’s any number of data points that Google has at their disposal, they increase the bids because historically your campaigns have got conversions at a very high rate from a user’s fitting this particular profile at the point of auctions. That’s a great thing to do, it really, really can help your campaigns and help them grow.
ECPC as much as it probably might increase your cost per clicks, if you’re running a manual strategy, it’s probably a good idea. Now one thing to mention, I’ve thrown out there before is that ECPC is essentially like a smart bidding strategy, it’s not fully going down the smart bidding routes but it means all of the problems that you might have encountered with a smart bidding strategy will probably still happen to you with ECPC.
Now I’ve done a whole video on why smart bidding strategies don’t actually work for some users because of different issues in their campaigns. You should go and check that video out if that’s you, but in this particular video, I want to focus on the main reasons smart bidding strategies don’t work and that is if Google doesn’t have enough conversion data.
If Google doesn’t have enough conversion data then how are they going to know what’s going to work? They don’t have enough the points to make accurate guesses and no matter how good their artificial intelligence actually is, if you don’t have enough data to make those decisions in terms of conversions it’s not going to perform well. The same thing applies for ECPC, if you’ve got a campaign with low conversion volumes then ECPC probably will just increase your cost per click and keep your conversions the same as well.
Now that you’re aware how ECPC works, it’s important to understand the context of ECPC in general because they’ve actually made some updates to ECPC which allows users not only to optimize towards convergence which ECPC was originally designed to do, it also offers the option to optimize towards a target number in terms of conversions values. If you assign a value to your conversions ECPC can now or if you haven’t got this yet in Google Ads it will happen you will be able to optimize towards a specific conversion value with ECPC. Conversions more likely to generate a certain value in terms of revenue to your business then Google can optimize towards that with ECPC.
We’re seeing they’re developing this side of things so we know Google are moving in the direction of automation. Now, this whole video is about manual CPC strategies. Now, the big question is how long manual CPC strategies have left in terms of shelf life because we know Google have made a ton of changes that take control away from the advertiser from all the way back where they changed how exact match works to make it well not exact.
In addition to that, they’ve also made a lot of changes in terms of removing average position and of course, recently they’ve removed accelerated delivery of campaigns as well because I know from speaking to Google accelerated delivery can play absolute havoc with their algorithms in their AI in terms of smart bidding. By removing it, they’re increasing the likelihood of smart bidding working.
With all these changes going, on you’ve got to ask yourself are you going to be able to use manual CPC bidding for the rest of your days using Google Ads. The likelihood, in my opinion, is you probably won’t because Google the move in that direction and you can see it from everything they’re doing.
This video it might be about manual CPC strategies and ECPC but my advice to you is if you’re using fully manual CPC try and migrate over to ECPC and if you see if you get any results and if you get results from ECPC campaigns, then you definitely have the green light to migrate to a fully automated smart bidding strategy. Take it in baby steps even though I know from experience as well that sometimes moving a campaign over to ECPC or to smart bidding might not work, it might make your campaign go backwards but it’s worth testing. With the direction of travel Google are going it’s really important you test things on your terms before they take away the functionality without warning.
Thank you guys so much for watching this video, if you liked it, leave a like below, let me know in the comments if you’re going to migrate over to ECPC or even move away from manual CPC altogether and move over to a smart bidding strategy. I’ll be more than happy to discuss that with you in the comments. I reply to pretty much every single comment I get, more important than that check out the other content over on my channel, loads of stuff on PPC and Google Ads there. Don’t forget to subscribe and I’ll see you guys on my next video.