Google to sunset Enhanced CPC for search and display ads by March 2025

Google this week announced plans to deprecate Enhanced CPC (cost-per-click) bidding for both Search and Display ad campaigns. This change marks a significant shift in Google's advertising offerings, impacting marketers and advertisers who have relied on this bidding strategy.

According to the official announcement from Google, the deprecation process will begin in October 2024. Starting from this date, advertisers will no longer have the option to select Enhanced CPC for new Search and Display Ad campaigns. Existing campaigns using Enhanced CPC will continue to operate as usual until March 2025.

The timeline for this transition spans approximately six months. From October 2024 to February 2025, advertisers can still use Enhanced CPC on their current campaigns. However, beginning March 2025, all remaining Search and Display Ad campaigns still utilizing Enhanced CPC will be automatically migrated to Manual CPC bidding.

Enhanced CPC, introduced by Google in 2010, was designed to help advertisers optimize their bids automatically. This bidding strategy allowed Google's algorithms to adjust an advertiser's manual bids in real-time, aiming to maximize conversions or conversion value within the specified target CPA (cost-per-acquisition) or target ROAS (return on ad spend).

The decision to phase out Enhanced CPC comes as part of Google's ongoing efforts to streamline its advertising products and push towards more advanced, machine learning-driven bidding strategies. While Enhanced CPC offered some level of automation, newer strategies like Maximize Conversions and Maximize Conversion Value provide more comprehensive optimization capabilities.

Google's announcement emphasizes that this change is part of their commitment to developing improved bidding strategies. The tech giant states that these newer automated bidding options often deliver comparable or superior outcomes compared to Enhanced CPC.

For advertisers currently using Enhanced CPC, Google recommends transitioning to alternative bidding strategies before the March 2025 deadline. The primary suggestions include:

1. Maximize Conversions: This strategy aims to get the most conversions for your budget without requiring a specific CPA target.
2. Maximize Conversion Value: Similar to Maximize Conversions, but focuses on maximizing the total conversion value rather than the number of conversions.
3. Manual CPC: For advertisers who prefer more direct control over their bids, manual CPC remains an option.

Google advises that if advertisers take no action by March 2025, their campaigns will automatically switch to Manual CPC bidding. This automatic transition ensures that campaigns continue to run without interruption, albeit with a different bidding strategy.

The deprecation of Enhanced CPC affects both Search and Display advertising campaigns. On the Search side, Enhanced CPC has been a popular option for advertisers looking to balance manual control with some level of automated optimization. For Display campaigns, Enhanced CPC has been used to help advertisers reach their target audience more effectively while managing costs.

This change reflects a broader industry trend towards more sophisticated, AI-driven advertising solutions. As machine learning algorithms become more advanced, they can often outperform hybrid strategies like Enhanced CPC, which combined manual inputs with limited automation.

The move away from Enhanced CPC aligns with Google's push towards smart bidding strategies that leverage vast amounts of data and machine learning to optimize ad performance. These advanced bidding strategies can take into account a wide range of signals, including device, location, time of day, remarketing list, language, and operating system, among others, to adjust bids in real-time for each auction.

For advertisers, this transition may require some adjustment. Those who have relied on Enhanced CPC will need to evaluate their campaign goals and choose the most appropriate alternative bidding strategy. This may involve testing different options to see which performs best for their specific needs.

Google emphasizes that advertisers should start planning for this transition well before the March 2025 deadline. This gives ample time to test new bidding strategies, analyze performance, and make necessary adjustments to campaigns.

The tech giant also recommends that advertisers review their conversion tracking setup to ensure it's accurate and comprehensive. Proper conversion tracking is crucial for the success of automated bidding strategies like Maximize Conversions and Maximize Conversion Value.

It's worth noting that while Enhanced CPC is being phased out, Google continues to offer a range of automated and smart bidding strategies. These include:

1. Target CPA (Cost Per Acquisition)
2. Target ROAS (Return on Ad Spend)
3. Maximize Conversions
4. Maximize Conversion Value
5. Target Impression Share

Each of these strategies serves different advertising goals and can be suitable depending on the campaign objectives, budget, and target audience.

The deprecation of Enhanced CPC also highlights the importance of staying updated with changes in the digital advertising landscape. As platforms like Google continually evolve their offerings, advertisers need to adapt their strategies to leverage the most effective tools available.

For agencies and marketing professionals managing multiple accounts, this change may require a significant effort to audit all client accounts and develop transition plans. It's advisable to start this process early to ensure a smooth transition for all affected campaigns.

Google has stated that they will provide support to advertisers during this transition period. Advertisers with questions or concerns about the Enhanced CPC deprecation can reach out to their Google Ads account team or consult the Google Ads Help Center for guidance.

As the digital advertising ecosystem continues to evolve, changes like the deprecation of Enhanced CPC underscore the need for advertisers to remain flexible and open to adopting new technologies and strategies. While such transitions can be challenging, they often lead to improved performance and efficiency in the long run.

Key facts about the Enhanced CPC deprecation

Announcement date: September 6, 2024

Start of deprecation: October 2024

Full phase-out date: March 2025

Affected ad types: Search and Display ads

Default transition: Automatic switch to Manual CPC if no action taken

Recommended alternatives: Maximize Conversions, Maximize Conversion Value, Manual CPC

Reason for change: Move towards more advanced, machine learning-driven bidding strategies

Support available: Google Ads account teams and Help Center