Google Ads is making a significant change to its bidding strategies. The platform has announced it will phase out Enhanced Cost-Per-Click (eCPC) for Search and Display Ads, with new campaigns losing the option to use eCPC starting in October 2024, and all remaining campaigns transitioning to Manual CPC by March 2025. This move signals a shift towards more advanced machine learning-driven strategies and requires advertisers to reassess how they manage their campaigns.
What is Enhanced CPC?
Introduced in 2010, eCPC was a smart bidding strategy designed to adjust bids based on the likelihood of conversion. This “light-touch” automated bidding option gave advertisers some level of control over their bids while optimizing for conversions. However, with the advancement of machine learning technologies, Google has developed more sophisticated bidding strategies, rendering eCPC less necessary.
Key Dates to Keep in Mind
October 2024
New Search and Display Ads campaigns will no longer have the option to use eCPC.
March 2025
All existing campaigns using eCPC will be transitioned to Manual CPC.
If you are currently using eCPC for your campaigns, now is the time to start planning for this shift.
Why Is Google Phasing Out eCPC?
The phase-out of eCPC is part of Google’s ongoing push towards more sophisticated machine learning-driven bidding strategies. Newer options, such as Maximize Conversions (with optional target CPA) and Maximize Conversion Value (with optional target ROAS), offer advertisers more automated tools to improve campaign performance.
While eCPC offered a basic form of automation, these newer strategies rely more heavily on machine learning to optimize bids in real-time based on a broader set of signals. Google’s ultimate goal is to simplify bidding decisions and improve campaign efficiency for advertisers, especially as the platform continues to evolve.
What Does This Mean for Advertisers?
For many advertisers, especially those who’ve relied on eCPC to balance control and automation, this change will require a re-evaluation of bidding strategies. Here are some key considerations:
Reassess Your Bidding Strategy
- If you’re tracking conversions, Maximize Conversions or Maximize Conversion Value should be your go-to strategies moving forward.
- If conversions aren’t your primary focus, and you aim to drive traffic, consider switching to Maximize Clicks.
- Remember that campaigns currently using eCPC with Maximize Clicks will automatically transition to Maximize Clicks once eCPC is fully phased out.
Audit Conversion Actions
Ensure that your conversion tracking is set up properly and that you’ve selected primary conversion actions. These will be crucial in helping Google’s machine learning algorithms optimize your campaigns effectively.
Budget Adjustments
Be prepared for possible changes in performance. Manual bidding strategies may lead to underbidding, while automated strategies could initially result in higher costs during the learning phase. Adjust your budget accordingly to accommodate these shifts and ensure a smooth transition.
Prepare for the Learning Period
Smart bidding strategies rely on a learning period during which Google’s algorithms gather data and adjust your bids accordingly. Be patient during this time and avoid making hasty decisions or turning off campaigns prematurely.
What to Expect Going Forward
The retirement of eCPC reflects a broader trend in Google Ads—one that prioritizes machine learning and automation over manual control. Advertisers who’ve been slow to adopt fully automated bidding strategies may need to adjust their expectations and practices. While some advertisers prefer manual bidding to maintain granular control, Google’s push for more advanced strategies suggests that automation will likely deliver better performance over time.
That being said, Manual CPC is not going away. Google’s decision to retain Manual CPC provides a safety net for advertisers who want to maintain full control over their bids. However, manual bidding may become more time-consuming and less effective as automated strategies continue to evolve and outperform human-managed campaigns.
Action Steps for Advertisers
As you prepare for this transition, here are a few steps to take:
- Test New Bidding Strategies: Start experimenting with Maximize Conversions, Maximize Conversion Value, or Maximize Clicks to see which works best for your campaigns.
- Audit Your Conversion Data: Make sure your conversion tracking is correctly set up and aligns with your campaign goals.
- Plan for Budget Recalibration: Be ready to adjust your budgets as your bidding strategy changes. Monitor performance closely during the transition and tweak as needed.
The phase-out of Enhanced CPC marks a turning point for Google Ads, pushing advertisers towards more advanced, machine learning-driven bidding strategies. While this change may seem daunting, it also presents an opportunity to improve campaign performance and efficiency. By understanding the alternatives, reassessing your current strategies, and preparing for the transition, you can ensure that your campaigns are set up for success in the new era of automated bidding.
Google Ads continues to evolve, and staying ahead of these changes will help you remain competitive and optimize your advertising efforts in the long run. If you need further assistance, reach out to an expert for guidance.
Nik Tsoukales, founder of REALTOP, is an experienced digital marketer with a track record of growing businesses and sales teams. He has received multiple awards for leading fast-growing companies and specializes in organic SEO, Google PPC, and Social Media. With over 89k clients acquired online, Nik’s expertise spans various industries including finance, healthcare, and real estate.
