PPC Bidding Strategies and Budget Management Flashcards

What is Target CPA bidding in Google Ads?

Answer: An automated strategy that sets bids to get as many conversions as possible at a specified cost per acquisition

Target CPA uses Google's machine learning to adjust bids in real time, aiming to achieve conversions at or near the advertiser's specified cost-per-acquisition goal.

What is the key difference between Maximize Clicks and Maximize Conversions bidding?

Answer: Maximize Clicks optimizes for traffic volume while Maximize Conversions optimizes for conversion volume

Maximize Clicks tries to generate as many site visits as possible within budget, while Maximize Conversions focuses on driving the highest number of conversion events.

What does ROAS stand for in PPC bidding?

Answer: Return on Ad Spend

ROAS (Return on Ad Spend) measures the revenue generated for every dollar spent on advertising, calculated as Revenue ÷ Ad Spend.

What is a bid modifier in Google Ads?

Answer: A percentage adjustment applied to base bids for specific conditions like device, location, or time

Bid modifiers allow advertisers to increase or decrease bids by a percentage for specific targeting dimensions such as device type, location, or time of day.

Which Smart Bidding strategy is most appropriate when the primary goal is to maximize total conversion value within a fixed budget?

Answer: Maximize Conversion Value

Maximize Conversion Value instructs Google to spend the full budget in a way that generates the highest possible total conversion value, ideal for revenue-focused campaigns.

What is Enhanced CPC (ECPC) in Google Ads?

Answer: A bidding mode that automatically adjusts manual bids up or down based on conversion likelihood

Enhanced CPC modifies manual bids in real time — raising them for clicks more likely to convert and lowering them for less promising clicks.