For those running CPC campaigns, Google has launched a useful bidding feature called Enhanced CPC to help them increase conversions enabling good ROI. The feature allows manual or automatic bidding where one can adjust the bids to get maximum benefits.

This bid management tool predicts the likelihood of a conversion occurring and then automatically increases or decreases the max CPC bid. For this it utilizes the conversion tracking data and considers factors such as historical performance of the ads, specific words that are present in the users query, match type, the user’s geographic location, web browser, operating system, language, time and day of the week, etc.

Based on its ability to make prediction regarding conversion, it will increase the max CPC bid if a conversion is likely to happen. On the other hand, the chances of a click to get converted are remote, it will lower the bid. While the bid can be made higher than max CPC up to 30%, there is no limit for decreasing the bid.

Enhanced CPC Tool can be easily activated on CPC Campaigns with Conversion Tracking enabled. By using it, one can manage and optimize the bids as per the preference through manual bidding or else by enabling automatic bidding, let AdWords modify the bids to increase the returns.