Google Adwords has just launched a new bidding feature that adjusts the max CPC based on keyword performance. What if bidmanagement tools become obsolete?

The “Enhanced CPC” or “CPC Optimizer” function will allow you to adjust the Max CPC according to the conversion rates in order to generally reduce the CPA of your campaigns.

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For example, if a keyword with a bid of 0.30 € obtains good performance in terms of transformation, the system could pass the CPC to 0.32 € or 0.39 € if the performance is very high. The CPC optimizer can increase the CPC up to 30% if the conversion rates justify it.

Conversely, if a keyword obtains low conversion rates, the system may lower the CPC.

To summarize, this is what this new type of auction can bring you:

  • Adjusting bids based on conversion history;
  • Recognizing high performance keywords and adjusting bids on derivatives thereof;
  • Adjusting bids based on performance associated with localization, language setting, browser and OS.

Of course, before activating this feature, you will need to install the conversion tracking offered by Google Adwords. Then you just need to check the “CPC optimizer” box that you will find in the “Bidding and budget” section. Note that campaigns using the optimizer cannot, for the moment, be managed via Google Editor. A software update should follow shortly.

Source: Google Inside Adwords

When we see this kind of option appear, we can ask ourselves the following question: is it useful to pay for a bidmanagement tool? Certainly they offer more customizable bidding strategies, but sometimes it adds such a level of complexity that campaign management becomes more complex.

What do you think ?