Case: Simyo uses ECPC bid strategy to grow Adwords conversions and cut costs
Using its parent company KPN’s mobile networks, Simyo positions itself as a reliable player at a reasonable price point in the Netherlands. Since the market for these products is highly volatile, Simyo and BlooSEM rely heavily on automation to ensure control and maximise performance. Together they’re constantly looking for ways to use machine learning to improve efficiency.
Hoping to get the most out of their Dynamic Search Ads, streamline their bidding and gain more affordable conversions, the team decided to test Enhanced CPC (ECPC) in Adwords. ECPC works by looking for ad auctions that are more likely to lead to conversions, and then raises the max CPC bid (after applying any bid adjustments set by the advertiser) to compete harder for those clicks. If a click seems less likely to convert, AdWords will lower the bid. ECPC tries to keep average CPC below the max CPC that’s been set (including bid adjustments), but may exceed the max CPC for short periods of time.
With help from Google, Simyo and BlooSEM ran a simulated A/B test over a six-week period to compare ECPC against the standard max CPC. They found that performance improved when using ECPC – a 20% lift in conversions and a 22% lift in conversion rate, while overall spend increased by only 1%. The insights about the difference in performance helped establish the added value of ECPC. Simyo and BlooSEM opted to use ECPC as a default going forward – while also testing other automated bid strategies – to ensure Google’s algorithms help the business find the right potential customers and drive performance.