Google AdWords recently made an announcement through its blog that advertisers would now be able to use a new bidding method known as ‘enhanced CPC’. This method uses conversion data you willingly provide to AdWords to automatically adjust your maximum CPC prices. The function utilizes historical conversion tracking data from your account to predict the chances of a new ad converting, resulting in more conversions while maintaining, or even reducing, your total CPA.
When asked why advertisers would use this system, Google replied with three benefits it provides:
- The system automatically adjusts your bids using information on how efficiently specific search or display network partner sites from the Google network have converted for you previously.
- The system recognizes when particular words within a keyword string convert well, adjusting your bid accordingly when consumers search for variations on those words.
- The system automatically calculates and analyzes the possibility of your ad converting based on detected user location, browser, operating system and language settings.
To use this great new feature, enable conversion tracking on your account by embedding the code on your site. Then navigate to the Bidding & Budgeting area in the settings tab for your campaign. Simply select the checkbox under Enhanced CPC and avail of its many benefits.
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