Google Ads is undergoing significant changes, particularly concerning its bidding strategies. Starting in October 2024, Google will begin phasing out the Enhanced Cost-Per-Click (eCPC) option for new Search and Display ad campaigns. For existing campaigns that use eCPC, the setup will remain in place until March 2025. After that, all campaigns utilising eCPC will be transitioned automatically to manual CPC bidding. This shift marks a considerable change in how advertisers will need to manage their ad budgets and strategies moving forward.
In this article, we will delve into what these changes entail, the reasons behind Google’s decision, the steps advertisers should take to adapt, and how Overt Digital Marketing can support businesses through this transition.
What’s Changing with Google Ads?
Beginning in October 2024, advertisers will no longer have the option to select Enhanced CPC for new Search and Display ad campaigns. Enhanced CPC has long been a popular bidding strategy because it adjusts manual bids based on the likelihood of a conversion, providing a blend of manual control and automated optimisation.
However, this option will be removed for new campaigns starting October 2024. Existing campaigns using Enhanced CPC will be allowed to continue until March 2025, after which they will be automatically switched to manual CPC bidding. This automatic migration will mean advertisers need to be prepared to either make proactive changes to their bidding strategies or adapt to a purely manual approach.
Why is Google Making This Update?
Enhanced CPC was Google’s first Smart Bidding strategy, introduced over a decade ago. Since then, the advertising landscape and technology have evolved considerably. Today, more sophisticated, machine learning-driven bid strategies are available, such as:
- Maximise Conversions: A strategy that focuses on getting the most conversions possible within a given budget, with an optional target CPA (Cost Per Acquisition).
- Maximise Conversion Value: A strategy that aims to generate the highest conversion value possible within a budget, with an optional target ROAS (Return on Ad Spend).
These newer strategies leverage advanced machine learning algorithms to predict conversion probabilities and optimise bids in real-time. They have demonstrated the potential to deliver comparable or even superior outcomes compared to Enhanced CPC. As a result, Google is encouraging advertisers to transition to these more efficient and effective bidding strategies.
The move away from Enhanced CPC aligns with Google’s broader push towards more automated, AI-driven solutions that enhance the performance of ad campaigns. By sunsetting Enhanced CPC, Google aims to streamline bidding options, encourage advertisers to adopt more advanced strategies, and ultimately, improve the overall user and advertiser experience on its platform.
What Should Advertisers Do to Adapt?
For advertisers, the upcoming changes present both challenges and opportunities. To ensure continued campaign success, it’s crucial to consider the following steps:
- Assess Your Current Campaign Goals: Evaluate whether your campaigns are focused on maximising conversions, conversion value, or clicks. If your goal is to maximise conversions and you have clear conversion tracking in place, transitioning to the “Maximise Conversions” strategy is a strong option. If you are looking to optimise for the value of each conversion, “Maximise Conversion Value” may be more appropriate.
- Consider Your Bidding Strategy Options:
- Maximise Conversions: Best for advertisers looking to drive as many conversions as possible within their budget.
- Maximise Conversion Value: Suitable for campaigns aimed at driving the highest conversion value, like e-commerce or high-value B2B leads.
- Maximise Clicks: An ideal option for those who do not have specific conversion goals but want to drive the most traffic possible.
- Prepare for the Transition to Manual CPC: If you choose not to transition to another Smart Bidding strategy before March 2025, your campaigns will automatically be migrated to manual CPC bidding. This manual approach requires more hands-on management and continuous optimisation, which could be time-consuming and potentially less effective than automated strategies.
- Review Display Campaigns: For Display campaigns currently using Maximise Clicks with Enhanced CPC, no action is required. From March 2025, these campaigns will automatically switch to a Maximise Clicks bidding strategy, which continues to optimise for click volume.
- Educate Your Team and Stakeholders: Make sure everyone involved in managing your Google Ads campaigns is aware of these changes and understands the implications for strategy, budget allocation, and performance tracking.
How Overt Digital Marketing Can Help
Navigating these changes in Google Ads can be complex and daunting for many advertisers. Overt Digital Marketing is here to assist businesses in seamlessly transitioning to the new bidding strategies. Our team of digital marketing experts is well-versed in the latest Google Ads updates and can provide tailored guidance to ensure your campaigns remain competitive and effective.
We offer a range of services, including:
- Campaign Analysis: We will conduct a thorough review of your current campaigns to identify the best bidding strategies to align with your goals.
- Strategic Recommendations: Based on your unique objectives, we will recommend the most effective bidding strategy, whether it’s Maximise Conversions, Maximise Conversion Value, or another option.
- Implementation and Management: Our team can handle the entire transition process, from setting up new bidding strategies to ongoing campaign management, ensuring optimal performance.
The upcoming changes to Google Ads’ bidding options are significant, and it’s crucial for advertisers to be proactive in adapting their strategies. By moving away from Enhanced CPC and embracing more advanced, AI-driven bidding strategies like Maximise Conversions and Maximise Conversion Value, businesses can take advantage of better automation and optimisation capabilities.
Overt Digital Marketing is here to help you navigate these changes and ensure your campaigns continue to deliver strong results. Reach out to us today to discuss how we can support your advertising strategy and help you stay ahead in the evolving digital marketing landscape.
By Manesh Ram, Digital Marketing Specialist. Please follow @maneshram & Meta
