About Enhanced CPC bids for Hotel ads

Note: This article applies only to Hotel campaigns in Google Ads. If you haven’t yet migrated your campaigns to Google Ads, learn more about the migration tool.

Overview

Enhanced cost-per-click (ECPC) for Hotel campaigns in Google Ads is a Smart Bidding strategy designed to increase conversions by automatically adjusting your Manual CPC bid.

Campaigns with the Manual CPC or CPC% bid strategies can use ECPC. You can't use ECPC when the campaign's bid strategy is Commissions.

Enhanced CPC is a campaign-level setting. You can enable ECPC in addition to having custom bid adjustments, which can be set at the ad group level. To use ECPC, a campaign must have conversion tracking enabled.

How it works

Enhanced CPC compares performance metrics like device type, traveler country, advanced booking window, and other factors to find your best converting and most valuable segments. Based on this analysis, ECPC will adjust your bid up or down at auction time to reflect whether a particular auction is more or less likely to result in a valuable conversion for you.

Enhanced CPC adjusts your bid based on the number of conversions, not the number of clicks. For example, if you're getting more clicks from desktop users compared to mobile, but your mobile customers have a higher conversion rate, your bid might be higher for mobile travelers than desktop travelers.

Benefits

  • Granular, real-time bid adjustments during an auction that target your best performing customer segments
  • More control than the Commissions bidding strategy.

Before you begin

To use ECPC, you must have conversion tracking enabled. It's also strongly recommended you use the following parameters with conversion tracking:

  • 'value'
  • 'currency'

Optional: The following parameters also help Google optimize your performance:

  • 'transaction_id'
  • 'id'
  • 'start_date'
  • 'end_date'

Set Enhanced CPC for Hotel campaigns

When you create a campaign, you can choose Enhanced CPC as a bid strategy. Learn how to create a Hotel campaign.

If you'd like to change your bid strategy, learn more.

Using ECPC with bid adjustments

The following table shows how the final bid is calculated based on whether ECPC is enabled and if there is a custom bid adjustment:

ECPC Positive bid adjustment Bid calculation
Enabled YES Final bid = bid * ECPC adjustment * custom bid adjustment
Enabled NO Final bid = bid * ECPC adjustment
Disabled YES Final bid = bid * custom bid adjustment
Disabled NO Final bid = bid

Using ECPC with negative bid adjustments

Enhanced CPC can be used together with -100% negative bid adjustments to exclude certain traffic from your campaign. For instance, if you bid $5, select Enhanced CPC, and also set a -100% bid adjustment for mobile devices, your bid will be $0 for mobile devices.

Understanding Max CPC value

The max CPC value that you set is a base value, not a cap on cost.  Before the auction, the max CPC value is multiplied by the number of nights, and may be further increased by bid adjustments, resulting in an effective max CPC bid that will often be higher than the base value that you set. The actual CPC (cost to you) will be <= this effective max CPC bid.

Example:
You set max CPC value of $1 and a user clicks on your ad with a length-of-stay of 3.

Room price CPC bid
First night: $100 $1
Second night: $90 $1
Third night: $80 $1
Total bid for 3 nights: $3
Bid adj type Bid adj
Device - Desktop +20%
Effective max bid $3.60

In this example, the actual cost to you for the user’s click will be <= $3.60.

If you do not want the CPC to increase linearly with the number of nights, you should use length-of-stay bid modifiers to decrease the bid for longer lengths of stay.

Learn more about CPC bids for Hotel campaigns.

Related links

If you need help with your Hotel ads, please contact us or request to chat with a support specialist.
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