Starting in October 2024, new search and display campaigns won’t be able to use Enhanced CPC, and by March 2025, any remaining campaigns will be automatically transitioned to Manual CPC or a smart bidding alternative. This change is part of Google’s ongoing shift towards fully automated bidding strategies that use machine learning for better performance.

Anthony Higman via X

Enhanced CPC adjusts manual bids automatically to increase the chance of conversions, while still respecting the max bid you set. When these campaigns make the switch to Manual CPC, you’ll be able to set exact bid amounts for each keyword or ad group with full control over how much is spent per click. Performance with Enhanced CPC can often be better because it uses Google’s algorithm to optimize bids based on real-time data to help push your bid up and capture a user who may be on the brink of a purchase. 

How Does This Affect You?

If your campaigns rely on Enhanced CPC, you’ll need to adjust your bidding strategy. Here’s what it means for you:

• Loss of Manual Control: Enhanced CPC allowed a balance between manual and automated bidding. Moving to smart bidding strategies means handing over full control to Google’s AI.
• Google’s Push for Smart Bidding: This change highlights Google’s continuous push towards smart bidding strategies, which are fully automated and focus on optimization using their AI. These strategies are designed to improve performance, but not all advertisers may be comfortable relying entirely on automation.
• Potential for Improved Results: Smart bidding options, like Target Cost Per Acquisition (tCPA) or Target Return On Ad Spend (tROAS), can lead to better performance when aligned with your business goals, particularly in terms of conversions or return on ad spend.
• Ad Spend Efficiency: Google’s AI-based bidding strategies analyze vast data points to make real-time decisions at each auction. While this can boost efficiency, you will need to closely monitor how these changes affect cost-per-click (CPC) and overall ad spend.

Next Steps To Prepare: 

Here’s what you should do to prepare:

1. Audit Your Current Campaigns: Identify which campaigns are using Enhanced CPC and evaluate alternative smart bidding strategies that might be a better fit.
2. Start Testing Now: Run an experiment with tCPA and tROAS to see how they perform compared to Enhanced CPC.
3. Track Performance: Closely monitor key metrics like CPC and cost-per-conversion to see how the new strategies impact results.
4. Prepare for the March 2025 Deadline: Ensure all campaigns are transitioned to a smart bidding strategy before the deadline to avoid Google automatically switching them to Manual CPC.

Google’s shift away from Enhanced CPC is part of a broader move toward fully automated bidding strategies. While these changes may require an adjustment period, they present an opportunity to enhance campaign performance with Google’s advanced AI tools.

If you need help transitioning your campaigns or optimizing smart bidding strategies, reach out to us. We’re here to guide you through the process and ensure your ads continue to perform at their best!