Google Announces Retirement of Enhanced CPC Bid Strategy: What Advertisers Need to Know

In a recent announcement dated September 5, 2024, Google has revealed significant changes to its advertising platform. The Enhanced CPC (ECPC) bid strategy, a long-standing option for Search and Display campaigns, is set to be phased out. This blog post will cover the key details of this transition and provide guidance for advertisers on how to adapt their strategies.

Timeline of Changes

October 2024

New campaigns: The ECPC bid strategy will no longer be available as an option for new Search or Display campaigns.

Existing campaigns: If you've already switched away from ECPC, the option to return to this strategy will be removed.

Current ECPC users: Campaigns currently using ECPC can continue to do so until March 2025.

March 15, 2025

Final transition: Any Search and Display campaigns still using ECPC will be automatically migrated to Manual Cost-Per-Click (CPC).

Managing the Transition

As you prepare to move away from ECPC, keep these important points in mind:

Monitor Performance Closely: When switching to a new bid strategy, it's crucial to keep a close eye on your campaign performance. Expect some fluctuations as the new bidding system adjusts.

Adjust Budgets and Targets: To maintain control over your spend and performance during this transition, be prepared to make adjustments to your budgets and targets as needed.

Alternative Bidding Strategies to Consider

Google recommends several alternative bidding strategies based on your advertising goals:

Maximize Conversions or Target CPA: Ideal if your goal is to maximize conversions within your budget and target CPA constraints.

Maximize Conversion Value or Target ROAS: Best for advertisers aiming to maximize return on ad spend within budget and target ROAS constraints. Note: This strategy requires at least two or more differentiated conversion values to be enabled.

Maximize Clicks or Target Impressions/CPM: Suitable if your primary objective is to increase site visits or impressions.

Pay per Conversion (Display campaigns only): If eligible, this option allows you to increase conversion volume while only paying for actual conversions.

Now with eCPC going away, the best way to keep control on bids is either to use manual CPC or to use smart bidding with a Portfolio strategy and set a min and/or max CPC.

Next Steps for Advertisers

Review your current campaigns and identify those using ECPC.

Plan your transition strategy, considering which alternative bidding strategy aligns best with your goals.

Begin testing new strategies on a portion of your campaigns to understand performance differences.

Stay informed about any further updates or guidance from Google regarding this transition.