Can you imagine a business in the 21^st century which doesn’t advertise? No right!!! That is because in the current age competition in every field is so brutal that if you don’t keep up to date you will get swept away. If you want to find customers, you will have to get to them and that is made possible through advertisement.

Enhanced cost per click is a paid advertising strategy used by marketers to reach customers. How good is it, is what we will find out in this article?

What is Enhanced cost-per-click?

ECPC is an improved or enhanced form of cost-per-click. Firstly, let’s understand what cost-per-click is.

Cost per click

It is an advertising model in which you set a budget, bid for ads and then according to the bidding results your ads are placed to be seen by customers. When a customer clicks your ad, you pay per click and that way your total bill depends on how many clicks you get.

The moment your budget is reached your ad is removed because everything comes with a price and so does ad placement!!

Enhanced cost-per-click is an automated form of cost-per-click in which machine learning practices are used. Machine learning automates the ads to improve the responses or clicks for your ad.

For every ad, the bidding is decreased or increased. That happens based on where your ad should be placed so that a customer interested in your business will click it. So basically with machine learning your ad is tailored to make the most out of your ad campaign.

Ad bidding

Coming to the ad bidding, you basically pay to place your ad at the top. Like any other auction if you pay high enough you get your ad to the top.

How does it work?

Now let’s talk about how adwords Enhanced-CPC (Adwords is a Google platform where you can bid for ads) really works. Google ads basically increase your maximum bid for an ad when it sees that particular space will prove beneficial and will lead you to customers. It also lowers the bid even to 0$ if it sees an underperforming ad. It uses smart bidding strategies to get the job done. What is smart bidding? Let’s find out.

History on Google Ads

For you to benefit from ECPC you need to have a history on Google ads for it to work for you. You need a minimum of 15 conversions at least in your campaign so that you have a history on Google ads.  Why does that matter? Well, if you don’t have data of a business how would you know about which ads will work for it and which won’t?

That’s like moving towards a disaster!!!

Conversion tracking

Another thing to consider is the use of conversion trackers. If your conversion tracker is on, then Google Ads will be able to understand which people will likely click your ad.

Smart Bidding

Google uses market signals like:

• User demographics
• Time of day
• Browser location etc.

With the help of these indicators, it estimates which ads to bid more for and which to bid less for.

A large sample size

A very important factor is that ECPC works better and Google Ads gives accurate results when the data size is larger. The more Google knows about you and your customers the better it is to bring you both closer. That’s kind of logical right? You make better decisions if you know more.

Why it’s important

If you are wondering why ECPC matters then here are some reasons that you need to know:

1.     Automation is the next big thing

Staying on top of your game means you need to perform better than your competitors in every way. If you automate every step then you make things faster, easier, and more efficient. If you keep using techniques that are old and insufficient then you aren’t giving yourself a fighting chance.

Microsoft Advertising is even removing the manual CPC with automated ECPC for future campaigns and so should you. Google ads will soon shift to ECPC as well and so staying stuck with CPC bidding is ill-advised.

2.     Faster and better bidding

With ECPC you get more control over the initial bidding with the help of strong machine learning algorithms along with automated bidding. You are also saved from bidding for an ad that won’t work for your business. That means that your time is saved from manual activities.

Time is money so saving it is always for the best!!

3.     More sales for you!!!

The very purpose of using ECPC is to improve your sales and that is what it does. Many businesses see increases in conversions leading to better sales. It does depend on your budget as for better ECPC you do need a heavier budget.

For that matter make sure the budget does not go too high. Higher conversions are a good thing but losing money on making it happen will disrupt company profit and the final numbers might not be worth it.

4.     Long term investment

For a business that has just started out investing in ECPC can bring a long-term profit. When you get more customers and especially influential people then many of them can be long-term customers. With a large number of valuable customers, you are headed towards profits in the longer run.

Conclusion

In this article, we went through the meaning, working, and importance of ECPC. It’s basically an improved form of CPC to makes things faster and better. ECPC basically automates bidding to prioritize ads that work. This saves time and helps you avoid biding on ads that won’t lead to sufficient clicks.

It’s important to keep in mind that it’s not something that will work like magic. The advertisement campaign for any successful company is much more complex and ECPC is just a part of it but it’s a very important one for sure.

For many people, putting trust and bidding control in someone else’s hands is a tough call but we have seen promising scenarios that favor this technique. ECPC has its pros and cons but with time and effort, you can understand better and make choices that work best for your business.