Google Ads is making a significant change to its bidding options. Starting in October 2024, Google will begin phasing out the enhanced cost-per-click (eCPC) bidding strategy for new Search and Display campaigns. By March 2025, all remaining eCPC campaigns will be transitioned to Manual CPC. This shift marks a major move towards fully automated bidding strategies, and it’s crucial for advertisers to understand how this will impact their campaigns.
Key Dates and What They Mean
- October 2024: The eCPC option will no longer be available for new Search and Display campaigns. This means that if you’re setting up a new campaign, you’ll need to choose from the available manual or automated bidding options.
- March 2025: All existing eCPC campaigns will be transitioned to Manual CPC. If you have ongoing campaigns using eCPC, they will automatically switch to Manual CPC unless you choose to adopt a different strategy.
Why This Matters
eCPC has been a popular choice for advertisers who wanted a balance between manual control and automated optimization. It allowed advertisers to dip their toes into automated bidding without fully relinquishing control to Google. Essentially, eCPC aimed to optimize bids based on conversion likelihood, providing a middle ground between manual bidding and more fully automated strategies.
With the removal of eCPC, Google is nudging advertisers towards its more advanced automated bidding options. This change is significant because it impacts how you manage and optimize your Search and Display campaigns. If you haven’t already explored fully automated bidding strategies, now is the time to start testing and adapting to ensure a smooth transition.
What Are Your Options?
Google introduced eCPC in 2010 as a Smart Bidding strategy designed to improve bids based on the likelihood of conversion. However, with the evolution of machine learning, Google has introduced more sophisticated automated tools that offer greater optimization potential:
- Maximize Conversions: This strategy focuses on getting the highest number of conversions possible within your budget. It uses Google’s machine learning to adjust bids dynamically and maximize your results.
- Maximize Conversion Value: If you want to focus on generating the highest value from your conversions, this strategy aims to maximize the total conversion value while considering your budget. It also offers an optional target return on ad spend (ROAS) to guide performance.
- Target CPA (Cost Per Acquisition): This strategy aims to get as many conversions as possible at a specified cost per acquisition. It leverages machine learning to adjust bids and meet your target CPA.
- Target ROAS: For those prioritizing return on investment, this strategy helps achieve a specific return on ad spend by optimizing bids based on historical data and performance trends.
What Should You Do Now?
As Google Ads transitions away from eCPC, it’s essential to prepare for the shift:
- Evaluate Current Campaigns: Review your existing eCPC campaigns and analyze their performance. Understand how they align with your marketing goals and what adjustments might be necessary.
- Test Automated Strategies: Start experimenting with Google’s automated bidding strategies to determine which one works best for your campaigns. Testing different options will help you identify the most effective approach for achieving your goals.
- Adjust Your Budget and Goals: As you transition to new bidding strategies, ensure your budget and performance goals align with your chosen approach. Automated strategies often require adjustments to budget allocation and performance expectations.
- Stay Informed: Keep up-to-date with Google Ads updates and best practices to ensure you’re making the most of the available tools and strategies.
Conclusion
The phase-out of eCPC represents a move towards greater automation in Google Ads bidding strategies. While this change might require some adjustments, it also offers opportunities to leverage more advanced tools for optimizing campaign performance. By understanding the upcoming changes and preparing accordingly, you can ensure a smooth transition and continue driving successful results with your Search and Display campaigns.