Enhanced CPC (eCPC) in Microsoft Advertising is an automated bidding strategy that adjusts your ad group bids in real time to increase the chances of a conversion. It raises bids for auctions more likely to convert and lowers them for those less likely. The base bids set by advertisers are honored as the primary lever, and are optimized at the time of the auction to maximize performance and drive more conversions. Enhanced CPC uses a variety of auction signals such as search queries, bid modifiers, location, device, ad copy, and more to make informed decisions and improve advertiser performance.

To prepare for the transition to enhanced CPC on Microsoft Advertising:

• Ensure you have conversion tracking set up by validating your UET tag on all site pages and setting up your conversion goals.
• For those relying on offline conversions, it's recommended to upload your offline conversion data daily, which can be done through a scheduled recurring import.
• Consider changing your conversion goal attribution to 'last touch' to optimize automated bidding based on click-based and view-through conversions.

No immediate action is required from you for the change, but optimizing these areas can help your campaigns succeed and meet marketing objectives.

Starting on April 30, manual cost per click (CPC) bidding will no longer be available for newly created native campaigns in Microsoft Advertising.

The benefits of using enhanced CPC compared to manual CPC include:

• Automatic bid adjustments in real time to increase conversion chances.
• Optimization of base bids at auction time to maximize performance.
• Ensuring the average CPC does not exceed the base bid set by the advertiser.
• Utilization of various auction signals to drive informed bidding decisions.
• Compatibility with technology providers managing campaigns, using their bids as a starting point.

Advertisers using enhanced CPC have seen an average of 6% lower cost per acquisition compared to those using manual CPC.

If enhanced CPC doesn't align with your goals, Microsoft Advertising offers the option to move your native campaigns to maximize conversions. This strategy allows you to drive more conversions while maintaining control over the target CPA (Cost Per Acquisition) that you're aiming to achieve.