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

Bid shading is a DSP algorithm used in first-price auctions that reduces the submitted bid to a predicted clearing price, preventing advertisers from overpaying by the full bid amount.

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

Google recommends accumulating at least 30 conversions in the past 30 days before switching to Target CPA so the algorithm has sufficient data to optimize bids effectively.

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

During the learning period, Google's algorithm tests bid levels to understand how they affect conversions, often resulting in temporary performance volatility.

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

Auction-time bidding evaluates dozens of contextual signals (device, location, time, user behavior) for every single auction to set the optimal bid in real time.

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 tries to achieve a specific cost per conversion, while Maximize Conversions gets as many conversions as possible by spending the full budget without a CPA constraint.

PPC - Management Practice Test

PPC - Management Practice Test

PPC PPC Bidding Strategies 2