How does the enhanced cost-per-click (ECPC) bidding strategy work?

ECPC looks at a listed target return on investment (ROI), then lowers a max cost-per-click (CPC) bid.

ECPC looks at ad auctions, then raises a max cost-per-click (CPC) bid.

ECPC looks at ad auctions, then lowers a max cost-per-click (CPC) bid.

ECPC looks at a listed target return on investment (ROI), then raises a max cost-per-click (CPC) bid.


Choose an option to see if it’s correct. Check the explanation below. Learn Smarter, not Harder.

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Explanation: How does the enhanced cost-per-click (ECPC) bidding strategy work?


Explanation: The correct answer is **'ECPC looks at ad auctions, then raises a max cost-per-click (CPC) bid.'** Enhanced Cost-Per-Click (ECPC) is a bidding strategy utilized in Google Ads that employs machine learning to adjust manual CPC bids for clicks that are more likely to result in conversions. Unlike manual bidding, ECPC allows Google Ads to automatically adjust bids for individual auctions based on the likelihood of conversion. When an ad enters an auction, ECPC analyzes various factors such as the user's device, location, time of day, and other contextual signals to determine the probability of conversion. If Google Ads predicts a higher likelihood of conversion for a particular click, it will raise the max CPC bid for that auction to increase the chances of winning the click. Conversely, if the likelihood of conversion is lower, ECPC may decrease the bid to avoid overspending on less valuable clicks. By dynamically adjusting bids based on conversion likelihood, ECPC aims to maximize conversions while maintaining or improving the overall return on ad spend (ROAS) for advertisers. Therefore, selecting the ECPC bidding strategy ensures that advertisers can optimize their bids effectively to achieve their desired conversion goals and maximize the performance of their Google Ads campaigns.
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