Manual CPC

A manual cost-per-click (CPC) bid means that you pay for each click on your ad. For CPC campaigns, you set a maximum cost-per-click (max CPC) bid. This is the most you’re willing to pay for a click on your ad. After setting the max CPC, check how many clicks your ads have accrued and whether those clicks lead to business results on your site. Don’t forget that internet traffic is always changing, so it’s important to re-evaluate your CPC bids on a regular basis.

This bidding method is beneficial because you only pay if the user has enough interest to click on your ad and learn more. Another benefit is that you have control over each bid, whether it’s an entire ad group or individual bids for individual keywords.

It is a good idea to choose a strategy when you are starting out and have no or limited access to data. Manually adjusting your bids will take a lot of time, but you will have more control over what you bid and how you spend your money. For this reason, many advertisers prefer this bidding strategy to Google’s automated strategies.

CPC is affected by many factors, such as competition, quality score, industry, and how much our competition is willing to bid for an ad for the same keyword. The more competition (the more people bid on the same keyword), the higher the CPC.

The cost-per-click is always determined for a given impression. When the results are loaded in Google Search for the entered words, the so-called auction. Auction advertisers are all advertisers who bid. In addition to the price, the online auction takes into account the relevance of the ad and the quality of the website.

Therefore, for example, it may happen that the advertiser who comes in the first place pays less than the one below it. These are the main reasons why it is not possible to publish the price of a click, the result of the auction is not known in advance and it is always a new auction.

Enhanced CPC (eCPC)

Improved CPC is basically the same as manual CPC. The only difference is that your bid may increase if Google thinks it will lead to a conversion, or it may decrease if it thinks conversion is unlikely.

The strategy has only two conditions, and that is to have a Google Ads account set up for conversion tracking and to choose an enhanced CPC strategy. Google Ads can increase your bid in the auction by 30% or reduce it by 100%. Google Ads algorithms take into account the likelihood that a user will achieve a conversion, which may increase their cost-per-click.

It is recommended that you enable this type of strategy for all campaigns where conversions are tracked and measured. During the long-term use of the strategy, you can get better performance for your keywords, such as a broad match. Of course, the more data (impressions, clicks) in a campaign apply to automated strategies, the better the AI ​​works and the better the results (unless you’re setting bid adjustments or using enhanced CPC).

When using enhanced CPC, the only limit is your daily budget, and it only works on the Search and Content networks.

About the Author:

Juraj Bence
Account manager of Bluewinston & CCS Shopping in EU ( I'm the guy responsible for the most effective PPC tool to create product text and Smart Shopping campaigns for Google Search.) Contact me @ bence@bluewinston.com