Google Ads continuously improves and updates with features, tools, and updates to make the experience better and advertisers earn the best ROI. The more recent change that has generated some interesting conversation in the ad industry is the elimination of Enhanced Cost-Per-Click (ECPC). So, you have this bidding method set up for your Google Ads campaigns, now, you must be wondering, what’s next? and how can I adapt?

In this blog, we will cover more about Enhanced CPC, why it is coming to an end, and what are the options to make sure your campaigns are not killed. We will also cover best practices for moving to new methods and how to make your ad perform best in Google Ads’ ever-changing landscape.

What is Enhanced CPC?

Before we dive into the changes, let’s find out what ECPC (Enhanced CPC) was and why it was popular among advertisers.

Enhanced CPC is a bid algorithm that changes your manual prices in real-time to convert better. ECPC is an alternate bidding system that mix manually bidding with some automated bidding.

It uses Google’s machine learning to change your bids based on the probability of conversion. That is to say, it would raise your bids when conversion is higher and lower when the conversion rate was lower.

For instance, if the user is clearly converted (from search history, demographics, location and device), Google Ads would bid higher on the click. On the other hand, for the less likely to convert users, Google will reduce the bid, which is good for saving you money but losing performance.

The main attraction of ECPC was that it gave advertisers more control over campaigns than fully automated bid methods such as Target CPA (Cost-Per-Acquisition) and used Google’s machine learning power to convert.

So Why Is Enhanced CPC Dying?

Google Ads is changing to be automated and more AI-based, and the move away from ECPC is part of this change. It is not a secret Google has declared Smart Bidding as the future of Google Ads. Smart Bidding tools leverage machine learning to automatically tailor your bids towards conversions.

The reasons for ECPC being retired are many:

Smart Bidding is more Effective: Google’s Smart Bidding policies Target CPA, Target ROAS (Return on Ad Spend), and Maximize Conversions leverage Google’s Machine Learning algorithms to re-bid on millions of data signals in real-time. This is a better way to run than ECPC for the majority of advertisers and it also gets results with a little less intervention from us.

Smoother User Experience: Google Ads is transitioning to a cleaner, more automated ad system. With smart bidding such as that, advertisers can leave Google to handle most of the bidding management, like adjusting bids and picking the best bids to make, leaving advertisers free to focus on other parts of the campaign such as optimizing ads copy or landing pages.

Data Access: ECPC is based on a smaller subset of signals as compared to Smart Bidding. The latter will have more data to process such as real-time data on user behavior, device, time of day, location and even weather conditions, which is a lot better informed about when and how to make bid changes.

A Universal Bidding Strategy: Google would like to standardize the bids in its platforms. ECPC is eliminated and this eliminates all the confusion for advertisers to make a decision based on a number of manual or automated bidding choices. Google thinks this will help advertisers run large campaigns in a reliable manner.

What Does This Mean for Your Google Ads Campaigns?

You will be able to make the transition after the deactivation if you are already making ECPC a part of your Google Ads plan and how you are going to use bidding strategy. These are some possible results and challenges:

Adaptation to Automation: If you have been working with ECPC on a hands-on basis, you will need to switch to more automated bidding methods. This change is scary if you’re worried about losing bid control. But Google’s automation is now incredibly refined, and it might be better with less effort.

Data-Driven Options: Google will make more use of data cues which could lead to more precise and better bidding decisions. This is usually a great thing, but it also means you have to provide enough historical information for the automated strategies to get enough information to be efficient. You will find that a new campaign doesn’t do as well in the beginning until there is enough data.

New Reporting Metrics: If you are transitioning to completely automated bidding, your campaign reporting might change. Automated tactics such as Target CPA or Target ROAS do not really care about clicks, but rather conversions and revenue, and therefore you will need to adjust your KPIs.

So, What Are the Best Replacements to ECPC?

If ECPC is going away, what can you do instead? Google has a bunch of automated bidding techniques that will get you to your targets fast. Let’s see a few of the options:

Target CPA (Cost-Per-Acquisition)

Target CPA is Smart Bidding option where you can determine the target cost per acquisition. Google will then auto-tune your bids so you meet that CPA. It is a perfect fit for advertisers who are looking to get conversions for a particular price.

Best for: Advertisers who want to drive the most conversions with total freedom of per-conversion price.

When to use: If you have a very clear CPA target and enough conversion data to help Google’s machine learning to work its magic.

Scope ROAS (Return on Ad Spend) – Target ROAS (Rates of Advertising):

Target ROAS lets you bid more efficiently on the ROI you are after. You define a goal ROAS and Google sets your bids to hit that, taking into account device, location, and time of day.

Ideal for: eCommerce companies/advertisers that care more about revenue than conversions.

When to use: If you want to maximize for profit and are monitoring conversion values (such as sales or lead revenue).

Maximize Conversions

Maximize Conversions bidding method automatically rebalances your bids to ensure you secure as many conversions as possible on a budget. It’s an excellent solution if you’re looking to get the most conversions but you don’t have a set CPA/ROAS number.

Best suited to: Advertisers who value quantity and do not care about the per-conversion cost.

When to use: If you have a small budget and want to get as many conversions as possible with that budget.

Maximize Clicks

Maximize Clicks automatically configures bids so you get as many clicks as you can afford. Although it is not conversion focused like the others, you can use it for driving traffic to your site if you are creating awareness or optimizing your site for conversion.

Best for: Ad-sellers needing a boost to the site visitors.

Use when: If you want to drive more site visits, not conversions or sales.

Enhanced Bidding Bid Adjustments and Manual CPC for Better Bidding Support.

If you still need a little manual intervention on your bids, but want a bit of automation, then manual CPC with higher bidding adjustments may be the right choice for you. Base bids are configurable for you, though Google will still calculate your bids based on conversion probabilities like with ECPC.

Designed for: Advertisers looking for control and automation in one.

When to use: When you are in control of your bids but still want some automated modifications.

So How To Break Free From ECPC?

Moving from ECPC to another bidding method is a long process that needs to be planned carefully so that your campaign doesn’t suffer any interruptions. Here are some guidelines to get you on board:

Evaluate Your Targets: The very first thing you need to know is what your key targets are (conversions, traffic, sales, etc.). This will enable you to decide on the correct bid approach in the future.

Collect Information: Ensure you have sufficient historical information (conversions, clicks, etc.) for Google’s algorithm to optimize your campaigns efficiently. And the more data Google has, the better able to tune bids to maximize results.

Test and Iterate: If you aren’t sure which automated bidding strategy is for you, run an experiment with a small test budget and test strategies. Prepare to change as you collect more data.

Watch Performance: Once you have switched, keep an eye on how your campaign is performing. Track KPIs such as CPA, ROAS, and ROI to make sure that the new approach is working. Do not be impatient as it might take a while for automated strategies to get into gear.

Smart Bidding for Every Campaign: Google advises to do Smart Bidding for every campaign for optimal results. You may consider Target CPA, Target ROAS, or Maximize Conversions for all your campaigns for a consistent data analysis.

Final Thoughts

Removal of Enhanced CPC might seem drastic, but it is just one step in Google Ads’ progression towards automated, data-based strategies. You will start taking advantage of Google’s amazing machine learning and free up time to focus on other critical parts of your marketing efforts once you adopt Smart Bidding.

Switching to tactics such as Target CPA, Target ROAS, or Maximize Conversions lets you be confident that your campaigns will continue to perform at their best without ECPC. Remember to test, keep an eye out, and iterate so Google’s automated answers work best for you. And never lose sight of your end goals to determine the proper bidding approach for your business.

With the right strategy, the future of Google Ads is good — and automation can be your best friend when it comes to putting it in action.