Microsoft Advertising transitions away from manual CPC to enhanced CPC

Microsoft Advertising announced today a major update to its native ad bidding process, transitioning away from manual cost-per-click (CPC) in favor of enhanced CPC (eCPC). This change aims to optimize advertiser campaigns, leveraging Microsoft's advanced bidding technology to deliver better results.

What is Enhanced CPC?

With enhanced CPC, advertisers still set their base bids, but Microsoft Advertising's system automatically adjusts those bids in real-time. Bids are increased for auctions deemed more likely to convert and lowered for those with lower conversion potential. This dynamic adjustment is designed to maximize conversions while respecting the advertiser's budget.

Key Timeline

• April 30, 2024: Manual CPC bidding will no longer be available for new native image and feed campaigns.
• May 13 - 17, 2024: Existing image and feed campaigns using manual CPC will be automatically upgraded to enhanced CPC.

Enhanced CPC Benefits

Microsoft reports that advertisers already using eCPC have seen an average 6% decrease in cost per acquisition (CPA) compared to manual bidding. The key benefits of eCPC include:

• Real-time optimization: Automatic bid adjustments based on conversion likelihood.
• Budget control: Base bids set by the advertiser are always respected.
• Data-driven decisions: eCPC leverages diverse auction signals like keywords, location, device, and more.

Additional Bidding Options

Microsoft Advertising offers "Maximize Conversions" as an alternative for advertisers seeking direct control over their target CPA. This strategy focuses on generating more conversions while maintaining a desired cost-per-acquisition goal.

How to Prepare

While the transition to eCPC is automatic, Microsoft recommends taking steps to optimize performance:

• Conversion Tracking: Implement Universal Event Tracking (UET) and set up conversion goals.
• Offline Conversions: Upload offline conversion data regularly.
• Attribution: Consider using a "last touch" attribution model to include view-through conversions.