Change to AdWords Enhanced CPC removes bid cap to account for location & audience

 AdWords users will notice a new alert in their accounts notifying them of changes to Enhanced CPC bidding.

 The notice says, “Enhanced CPC (ECPC) bidding now has more flexibility when adjusting your bids to help you get more conversions.” Enhanced CPC (ECPC) automatically adjusts manual bids based on how likely a click is estimated to convert. The bid flexibility of ECPCs has always been bound by the max CPC and would only increase a bid 30 percent above the Max CPC.

With this change, that bid cap is no more.

AdWords will now automatically adjust ECPCs “to fully account for differences in conversion rates across dimensions like audience and location.” Because ECPC is automatically taking location and audience targeting into account, Google says, advertisers won’t have to set bid adjustments any more to account for the dimensions manually.

Interestingly (or oddly), ECPC does not take device into account. Google suggests advertisers may still want to use device bid adjustments.

So what about managing CPCs if the upper cap is removed? Google says the system will try to keep average CPCs below the max CPC “over time.” Advertisers may also see different outcomes depending on campaign type as a result of these changes:

Source: - http://searchengineland.com/google-adwords-ecpc-bid-cap-removed-274824

WHAT IS RETARGETING AND HOW DOES IT WORK?

WHAT IS RETARGETING AND HOW DOES IT WORK

Retargeting, also known as remarketing, is a form of online advertising that can help you keep your brand in front of bounced traffic after they leave your website. For most websites, only 2% of web traffic converts on the first visit. Retargeting is a tool designed to help companies reach the 98% of users who don’t convert right away.

HOW DOES RETARGETING WORK?

Retargeting is a cookie-based technology that uses simple a JavaScript code to anonymously ‘follow’ your audience all over the Web.

Here’s how it works: you place a small, unobtrusive piece of code on your website (this code is sometimes referred to as a pixel). The code, or pixel, is unnoticeable to your site visitors and won’t affect your site’s performance. Every time a new visitor comes to your site, the code drops an anonymous browser cookie. Later, when your cookied visitors browse the Web, the cookie will let your retargeting provider know when to serve ads, ensuring that your ads are served to only to people who have previously visited your site.

Retargeting is so effective because it focuses your advertising spend on people who are already familiar with your brand and have recently demonstrated interest. That’s why most marketers who use it see a higher ROI than from most other digital channels.

WHEN DOES RETARGETING WORK?

Retargeting is a powerful branding and conversion optimization tool, but it works best if it’s part of a larger digital strategy.

Retargeting works best in conjunction with inbound and outbound marketing or demand generation. Strategies involving content marketing, Ad Words, and targeted display are great for driving traffic, but they don’t help with conversion optimization. Conversely, retargeting can help increase conversions, but it can’t drive people to your site. Your best chance of success is using one or more tools to drive traffic and retargeting to get the most out of that traffic.

Source:retargeter.com