Microsoft Replaces Manual CPC with Enhanced CPC as of March 2021

Microsoft has published a press release confirming the transition of all search, shopping, and Dynamic Search Ads campaigns without automated bidding strategies to Enhanced CPC (eCPC) as of the beginning of March.

The update is predicted to impact millions of businesses and marketers worldwide, though according to Microsoft is only set to bring positive changes and measurable service improvements.

“Starting in March 2021 and continuing through April 2021, all existing search, shopping, and Dynamic Search Ads campaigns without any automated bidding strategies in place will be automatically migrated to Enhanced CPC. All ad groups and keywords will also be set to inherit bidding from their parent campaign,” read a statement from Microsoft.

“To make this migration seamless, starting on April 5, 2021, any new campaigns created will no longer have the option of Manual CPC. By April 30, 2021 any campaigns not yet using eCPC will be automatically migrated.”

New Benefits and Opportunities

Microsoft has spoken with confidence about the transition and has outlined a series of benefits associated with its new enhanced manual bidding framework.  Examples of which include better bidding practices for eCPC campaign managers, real time responsiveness for more dynamic campaign optimisation and greater overall flexibility.

The new system will enable eCPC campaign managers to choose from a variety of specific goals, including but not limited to Maximize Clicks, Maximize Conversions, Target CPA (cost per acquisition) or Target ROAS (return on ad spend).

In the countdown to the transition, Microsoft has advised its customers to begin campaigns of testing to allow for the best possible results.

“To ensure that your campaigns are best set up to align with your performance goals, we recommend setting up tests to identify and/or validate your optimal automated bidding setup, which may include but is not limited to Enhanced CPC. For search campaigns, we recommend using Campaign Experiments to validate performance,” Microsoft stated.

Additional Points of Importance about eCPC

Further emphasising the potential benefits of eCPC, Microsoft outlined a series of key points in its release including the following:

• eCPC has the potential to boost conversions by up to 10% without affecting CPA
• eCPC improves search partner performance by optimising for high quality links
• eCPC has reduced CPA by as much as 20% for some advertisers

Microsoft has also indicated that additional tools, resources and information or guides will be made available for advertisers in due course.

An extract from the statement on eCPC released by Microsoft:

“Businesses across the world are undergoing digital transformation and advertising is no exception. We see advertisers increasingly embracing automation to meet their business goals, a trend accelerated greatly by the world situation. Microsoft Advertisings Automated Bidding solutions are a great way to drive campaigns towards your performance goals, providing the ability to dynamically set bids at auction time based on the targets you set,”

“Automated Bidding strategies have seen tremendous growth over the last year, driven by strong advertiser ROI gains and the ability to remain responsive to a dynamic marketplace led by varied consumer and competitor behaviors; infusing automation into your bidding practice is proven to help you adjust swiftly, optimise your time to focus on high-impact projects, and ultimately work smarter to drive optimal results,”

“To help you take advantage of this technology, starting this spring, all your manual bidding strategies will be optimized by Enhanced CPC (eCPC). Enhanced CPC will become the bid strategy for all search, shopping, and Dynamic Search Ads campaigns not yet opted into Automated Bidding.”