PPC PPC Bidding Strategies 2

Question 1

What is bid shading in programmatic advertising?

Accepted Answer

An algorithm that lowers winning bids in first-price auctions to avoid overpaying

Answer

Artificially inflating bids to win impressions

Answer

A technique to hide bids from competitors

Answer

A manual process of reducing bids on low-performing placements

Question 2

What minimum amount of conversion data does Google recommend having before switching to a Target CPA bidding strategy?

Accepted Answer

30 conversions in the last 30 days

Answer

5 conversions in the last 7 days

Answer

15 conversions in the last 14 days

Answer

100 conversions in the last 30 days

Question 3

What happens during the 'learning period' after switching to a smart bidding strategy?

Accepted Answer

The algorithm experiments with different bids, which may cause performance fluctuations

Answer

Ads are paused while Google collects data

Answer

Bids revert to manual CPC until learning completes

Answer

Google charges a higher CPC to gather auction data

Question 4

What is 'auction-time bidding' as used by Google Smart Bidding?

Accepted Answer

Adjusting bids in real time for each individual auction using contextual signals

Answer

Setting bids manually right before ad auctions occur

Answer

Scheduling bid changes at specific hours of the day

Answer

Allowing competitors to view your bid strategy

Question 5

In Google Ads, what is the difference between 'target CPA' and 'maximize conversions'?

Accepted Answer

Target CPA sets a cost-per-conversion goal; maximize conversions spends the full budget regardless of CPA

Answer

Target CPA focuses on clicks; maximize conversions focuses on impressions

Answer

Target CPA is for Display only; maximize conversions is for Search only

Answer

Target CPA requires manual bids; maximize conversions is fully automated

Question 6

Why might an advertiser use a bid cap with a Maximize Conversions strategy?

Accepted Answer

To prevent the algorithm from bidding excessively high amounts on individual auctions

Answer

To increase impression share on branded terms

Answer

To force the strategy to use only exact match keywords

Answer

To limit the number of ad impressions per day