Significance of Microsoft Ads to Replace Manual with Enhanced CPC – Today

Microsoft Ads’ is on to soaring heights. It is now transitioning its ads’ bidding system to an automated or enhanced cost-per-click system.  

From manual cost-per-click bids, it will now be using the automated enhanced cost-per-click system. The automation of this bidding system will override the existing rotating ad settings and will start prioritizing better-performing ads. Businesses with excellent performing ads have to pay less for every CPC as per regulations of the enhanced CPC. 

This comes as no surprise that Microsoft will adopt this type of scheme. Prioritizing better-performing ads means extending their reach. As of present, the engagement of Microsoft ads can reach an average of 7.5 million users per month. Microsoft ads are visible in several search engine landing pages and sites, such as Bing, Yahoo, and AOL. 

Why Transition to Enhanced CPC

As per Microsoft’s announcement regarding the transition, using eCPC is hugely beneficial for ad companies to stay on top of their game. Here are some of the reasons why. 

Streamline Target Demographic

With eCPC, marketing agencies can track their target demographic better. The automated system will boost your online business presence to your possible clients. It will specifically focus on targeting users who are most likely to engage with ads and services. 

With the manual process, streamlining the target of your hands takes a long time. Research and thorough observation and prediction of trends are necessary. However, as eCPC is automated, the system does the research and observation part for you. With just a click of a button, the bids for your campaign are automatically adjusted. 

Increase Conversion Rates 

From the same announcement from Microsoft, conversion rates increase from 5 to 10% without added value to their cost per action (CPA). The use of various tools, like bid modifiers and search queries, helps marketing agencies keep track of their ads’ performances. 

Anchoring on the above-mentioned reason, this method streamlines your target to people who are most likely to convert their engagement to your business goals. Once you are able to deliver excellent service to them, there is also a high possibility that they will vouch for your brand to other people. 

As per Microsoft’s rules, eCPC applies to search and content campaigns only. Since content campaigns are mostly promos with limited timeframes, implementing robust bid strategies like eCPC is the best course of action. Time is of the essence and eCPC can provide results within a limited period. 

Saves Money

When talking about automation, people always think about the need to lay more money on the table. But, this is not the case with eCPC. 

Another advantage of the enhanced CPC is that there is no significant increase in the value for the cost per action from the manual strategy. In fact, if your brand already produces high-performing ads, your bid prices per COA will decrease. 

But, the decrease will not be immediate. According to Microsoft’s guidelines, choose the eCPC system for a month. At the end of the month, check the current value of your bids. The new value will be the base bid value for your ad placement.

The possibility of lower prices also encourages ad agencies and marketing teams to create more effective online advertisements. Better content brings more clients in. Conversion rates increase thus better ad performance. 

Improved Return of Investment 

In any business investment, one of the main concerns always circles back to the rate of the return of investment. In the case of using enhanced CPC, it’s fairly simple. Increased conversion rates coupled with lower costs mean a higher and faster return of investment. 

Putting these benefits together, the automated system channels ads to a more targeted demographic. The recipients engage with the ads more, thus extending the reach of Microsoft ads. As a return, Microsoft lowers ad prices for high-performing ads to encourage more activity from these companies. 

The cycle of creating and earning turns faster. Ad teams are encouraged to put out quality content because it gains organic traffic from the users of Yahoo, AOL, and Bing. 

How to Utilize Enhanced CPC

If you think that the benefits listed above are advantageous for your brand, then set up your ads bidding system to enhanced CPC. There are several free tutorials for free that focus on different Microsoft Office courses, such as ad systems. 

Here’s an outline of what you need to do to get started on eCPC. 

  • Discover the new bid strategy field under the campaign settings. 
    • Fill out the details for all blanks, including the daily budget and bid strategy. 
    • For the bid strategy, choose the enhanced CPC option. 
    • You can also choose to tweak the location option to direct your ads to a specific region. 
  • The screen will show a list of your existing search and content campaigns. 
    • Select which of the ads will be subjected to the eCPC strategy
    • The bidding strategy for particular keywords will follow the strategy of the parent campaign
  • The strategy type will show up on the Bid Strategy Type column. 
  • The value of the bid will also show up under the Bid column. 
    • The values under this column will have indications of whether it is enhanced by the eCPC or not. 

The method is simple enough for companies who already have established relations with Microsoft Ads. If you are yet to start your investment with them, make sure to inquire with their Ads Team through this website:

Key Takeaways 

This transition from manual to enhanced CPC is a huge step for Microsoft and its clients. There is a lot at stake if things go awry. But with the benefits that this strategy is bringing to the table, losses from the clients seem impossible. 

The promise of a faster return of investment along with lower costs and a more targeted demographic is a dream come true for advertising teams. Aside from that, Microsoft is a global multi-billion company that has established its credibility over the years. 

The question is not whether it’s worth investing in. The proper question is how much to invest in campaigns and how often.