Bidder Beware: What You Need to Know When Updating Google AdWords Bid Types

As we all know, the Google AdWords platform is an ever-changing machine that keeps all of us advertisers on our toes.

One area where there has been significant change in the last few years is with Google’s myriad of bidding options. There’s Max CPC, Enhanced CPC, and Conversion Optimizer.

Each bidding option carries a distinct set of pros and cons, but what is more important is that they all have unique effects on your account performance. When this is most obvious is when you switch from one bidding option to another. Here’s an overview of what you can expect when updating your AdWords bidding options.

Max CPC to Automatic Bidding for Budget

All AdWords campaigns are set to Max CPC bidding by default. From there you can begin to add on increasingly more complex features.

The first such option is one designed to get you as many clicks as possible within your budget. This is loosely referred to as “automatic bidding for budget.”

Other things you need to know:

  • This bidding option is strictly designed to increase click traffic. It doesn’t take conversions into consideration.
  • You set a CPC bid limit at the campaign level. This bypasses your ad group or keyword level max CPC in order to generate more clicks.
  • Because this feature is dependent on your budget, make sure you double check your campaign budget before you switch to this bidding option. If your budget is set too high, you run a high chance of spending too much money.

Max CPC to Enhanced CPC

Enhanced CPC is the newest kid on the block, but is definitely an interesting feature. Enhanced CPC uses your conversion data to modify your bids to increase the likelihood of conversion.

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