Thursday, July 3, 2014

Difference Between Enhanced CPC and Conversion Optimizer

Both enhanced CPC and Conversion Optimizer are tools that helps to get more conversions from your adwords campaign. The basic difference between the two is that enhanced CPC works on maximum CPC (Cost per click) whereas conversion optimizer works on maximum or target CPA (Cost per acquisition). Let us learn in detail about the two tools available for conversion optimization.

Enhanced CPC

The Enhanced Cost-Per-Click (ECPC) is a bidding feature that automatically raises your max CPC bid by upto 30% for clicks that are more likely to generate conversions.

Suppose your max CPC bid is $10 and you wish to increase sales for your product 'flashy umbrella'. You decide to run an ECPC campaign in order to raise the number of conversions. The ECPC bidding system will automatically raise the max CPC and make it around $13 for clicks that have the highest chances of converions.

ECPC uses historical data to find out pattern of clicks and conversions. This gives it an idea about the keywords or channels that are providing the maximum conversions and it will bid heavily for those keyword combinations or display channels.

Conversion Optimizer

Conversion optiizer is a bidding features that automatically optimizes your adwords campaign by raising your bid depending upon the max CPA or the target CPA (average amount you are likely to pay for a successful conversion).

Suppose your target CPA is $10 and you wish to increase sales of your recipe book. Running a conversion optimizer will automatically optimize your campaign and raise or lower the bids on keywords/sites that are more likely or less likely to deliver conversions respectively.

Conversion optimizer uses historical information to detect higher performing sites or sites of a particular theme that are leading to maximum conversions.

Hope you understood the difference between ECPC and conversion optimizer. For more help related to adwords, please read the resources given below.

Also See:

What are CPC, CPA, CPM and CPV in Adwords
101 Free Resources for Learning Adwords