As announced on the Google Ads Developer Blog on May 9th, AdWords is changing Enhanced CPC (ECPC) to further assist you in increasing total conversions. Previously, ECPC automatically raised bids by up to 30% when the system thinks a click is more likely to lead to a conversion. Alternatively, if a click seems less likely to lead to a conversion, bids would be lowered. Google is now removing the 30% bid cap to account for the differences in conversion rates among the audience and location dimensions.
As the year is coming to a close and we look back on new innovations to search engine marketing, here are five things (in no particular order) your website’s SEM efforts need in 2011:
Mobile Ad Campaigns. According to Nielsen, smartphones are expected to be in the hands of half of US mobile users by the end of Q3 2011. With the rise of smartphones, it has become critical, and easier, to market to users on their mobile phones. Mobile ads can appear on mobile websites in text, image and sometimes video format.
Remarketing Ads. Remarketing allows you to show ads to previous visitors of your website as the user browses other sites through the Internet. Remarketing allows you to reach more qualified potential customers because these visitors have already shown an interest in your product or service. Remarketing is like being able to reach window shoppers who have come to your store, did not make a purchase, and entice them to come back with a special offer and complete a purchase.
Ad Extensions. Google ad extensions are an added value to your Google AdWords ads and come in the form of location, phone, product and sitelinks extensions. They are available at the same CPC costs as your regular AdWords ads.
Display Ads. With placement and audience targeted capabilities, keyword related matching and a CPC model, the display ad has been re-born. You can now specify how and when your display ad is shown so that it is only being viewed by the most qualified user. In addition, Google has introduced an “above the fold” restriction where your display ad will only be shown on web pages above the fold on a user’s screen.
Optimized PPC Campaigns. Since the SEM industry is ever-changing and becoming an increasingly competitive channel, it is imperative to closely monitor your PPC campaigns as often as possible. CPCs are expected to increase in 2011, which will impact your ROI, so it is important to go back to the basics in order to maintain cost-effective campaigns. Focus on ad copy and landing page testing as well as optimize keywords on an ongoing basis. Most importantly, optimize your landing pages because it would be a waste to have a PPC campaign with all the bells and whistles that links to a landing page which does not have messaging that connects to the visitor.
Wishing you a happy and prosperous 2011!
Google AdWords has released a new automatic bid management feature, called Enhanced CPC, which is designed to increase your ROI on Max Cost-Per-Click (CPC) campaigns, while maintaining or even reducing your overall Cost-Per-Conversion.
How it works:
Google analyzes your CPC campaign’s historical conversion tracking data along with factors such as user search query, geography, time of day, web browser or operating system. Then, when your ad is eligible to appear, it will automatically raise or lower your Max CPC bid based on the probability that your ad will convert. If your ad has a high chance of converting, your bid can be raised as much as 30% over your Max CPC bid, and lowered if a different ad has a higher percentage of converting.
Unlike other optimization efforts from Google AdWords, this new automatic bidding feature works with ad scheduling, position preference and demographic bid multipliers. Enhanced CPC also works on Google Network Partners (AOL, Ask, etc.) and Content Advertising. However, the feature is not available in AdWords Editor.
As a Campaign Manager, I have started using Enhanced CPC for some e-commerce clients and have seen an increase in transactions without any other changes. For one client, I experienced a 39% increase in transactions with a 45% decrease in Cost-Per-Conversion, along with a 9% decrease in advertising spend.
Enhanced CPC gives you the winning formula for your ad to receive more conversions, without increasing your Cost-Per-Conversion, and eventually increasing your ROI.