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This change in AdWords is best explained with an example:
Billy sells manuka honey and has enabled Enhanced CPC for a campaign that contains the following keywords, each with a Max CPC bid set to $0.50:
- manuka honey
- manuka honey digestion
- manuka honey benefits
When a user searches for ‘manuka honey digestion,’ the AdWords system recognises that this term has converted well for Billy in the past, and therefore increases the Max CPC bid to $0.52 for this specific auction. If the likelihood of a conversion is very high, Enhanced CPC can bid up to 30% above the Max CPC. This means that the most that Billy will be charged for a click is $0.65.
This would appear to favour the advertiser but beware, Google is in business to make money and AdWords is their key revenue stream, so don’t be too hopeful!
Need help with Google Adwords? Call Steer – Google AdWords Agency, Auckland
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- Google Launches Enhanced CPC for AdWords (webpronews.com)
- Enhanced CPC – Google’s Latest Tool For Lazy PPC’ers (epiphanysolutions.co.uk)
