How does the enhanced cost-per-click (ECPC) bidding strategy work?

1. ECPC looks at a listed target return on investment (ROI), then lowers a max cost-per-click (CPC) bid.
2. ECPC looks at ad auctions, then lowers a max cost-per-click (CPC) bid.
3. ECPC looks at a listed target return on investment (ROI), then raises a max cost-per-click (CPC) bid.
4. ECPC looks at ad auctions, then raises a max cost-per-click (CPC) bid.

Correct Answer:

• ECPC looks at ad auctions, then raises a max cost-per-click (CPC) bid.

Explanation: The Enhanced Cost-Per-Click (ECPC) bidding strategy functions by actively adjusting your manual bids based on the likelihood of a click leading to a sale or conversion. eCPC reviews ad auctions and increases your max CPC bid to compete more effectively for conversion-prone clicks. It’s a Smart Bidding form but does not fully utilize all auction-time signals like Target CPA and Target ROAS.

Read more here: https://support.google.com/google-ads/answer/2464964