Baidu Search offers three bidding methods: CPC, eCPC, and oCPC. What is the difference between these three bidding methods? Why should an advertiser choose one over the other? Read this article to learn more.

Question 1: What are CPC, eCPC, and oCPC?

1. CPC:

Baidu Search uses a manual bidding method for each keyword. The average cost per click will not exceed the bid. Advertising costs are calculated based on the cost of each click, and the fee will only be accounted for if there is a click and no fee for displaying the ad.

For example, in Baidu promotion, the price per click is CNY ¥0.50, then the CPC of Baidu promotion = CNY ¥0.50.

2. oCPC:

Optimized CPC (oCPC) is a fully intelligent bidding method used by advertisers to target conversions. Based on advertisers' value and the real-time traffic competition environment within the advertising budget, the system will intelligently and dynamically adjust bids.

In Q1 of this year, Baidu upgraded its oCPC advertising model, and we have also analyzed it. If you are interested, click the link for more details: https://so360.hk/news-details?article_id=265.

3. eCPC:

eCPC was upgraded to an “enhanced mode” in 2022, so advertisers are no longer required to set target conversion bids. Accordingly, the system dynamically adjusts the bids for clicks according to the original bids, which increases traffic. Compared to oCPC, eCPC's bidding model is considerably more conservative.

For example, if the original bid is CNY ¥1.00, the system will dynamically adjust the bid within CNY ¥1.00-¥2.00 according to the actual bidding situation. If the bid is CNY ¥2.00, the click fee will be CNY ¥2.00.

Question 2: Benefits of choosing CPC/eCPC/oCPC?

1. CPC:

According to the theory of ensuring quality advertisements, the higher the CPC, the higher the ranking on the search results page and the more traffic. Additionally, the price is highly controllable and can be promoted strictly according to the set price. By utilizing the DMP crowd package, targeting audiences can be more accurate. It is important that advertisers pay attention to the promotion situation and fine-tune their management and optimization with enough experience.

2. oCPC:

Through AI technology, the system intelligently distinguishes suitable traffic and potential users. Make your advertising budget more effective by bidding more for low-value and low-value traffic. The system automatically bids around the set target conversion cost; without manual control, the price may be high or low, but the overall price is not much different from the set price. As the system automatically explores the users and improves the accuracy, it does not require users to locate the DMP crowd package.

3. eCPC:

According to click-through rate and conversion behavior data, the system will estimate the conversion rate within a small range and automatically adjust the bid slightly lower than the CPC for manual operations. DMP crowd packs can also be placed. There is no need to set target conversion bids, but you should pay attention to conversions and adjust bids regularly.

Question 3: How to choose CPC/eCPC/oCPC?

Understanding the account structure and product information analysis is important for advertisers before they advertise. Based on the advertising budget, the number of products, etc., the use of the three modes is recommended as follows:

1. CPC

Since CPC controls traffic in real time through price and increases traffic quickly. The service is most suitable for advertising accounts with a daily budget of less than CNY ¥1000.00, who have strict requirements on click costs, and who are very familiar with the industry and company business. Or advertisers with fewer conversion data in the early stage of promotion can quickly accumulate data. In addition, for accounts with strong seasonality, CPC can also grab more traffic during peak seasons.

2. oCPC

The oCPC model is ideal for advertisers with advertising budgets over than CNY ¥5000.00 and strict control of costs. It is not always necessary for advertisers to pay attention to the bids of keywords; instead, they should instead pay attention to whether the conversion cost is acceptable. More products are suitable for promotion, and enough conversions are required. Budget costs are high, and costs have to be controlled.

3. eCPC

The eCPC bidding model is suitable for advertisers whose budget is between than CNY ¥1000.00 and ¥5,000.00, along with certain conversion data and click price requirements. When the impressions/clicks are small, or no one manages the account, the budget is small, and conversions are scattered. It is recommended to use eCPC to give the system a certain space to find more conversions, and the cost is also controllable.

If you want to learn more about the China advertising platform, feel free to contact our marketing consultant at: enquiry@so360.hk.