PPC PPC Bidding Strategies 3

Question 1

What is a first-price auction in programmatic PPC?

Accepted Answer

An auction where the highest bidder wins and pays their full bid amount

Answer

In a first-price auction, the winning bidder pays exactly what they bid rather than a lower clearing price, which is common in most programmatic display exchanges today.

Question 2

Which factor does NOT directly influence your Google Ads CPC in a search auction?

Accepted Answer

Your advertiser industry category

Answer

Actual CPC is determined by the Ad Rank of the next competitor divided by your Quality Score plus one cent — your industry category is not a direct input in the auction formula.

Question 3

What does 'position-based' attribution model assign in Google Ads?

Accepted Answer

40% credit to the first and last clicks, 20% distributed across middle interactions

Answer

The position-based model gives 40% credit to the first-click interaction, 40% to the last-click interaction, and spreads the remaining 20% across all middle touchpoints.

Question 4

What is the purpose of seasonality adjustments in Google Smart Bidding?

Accepted Answer

To inform the algorithm of expected short-term changes in conversion rates for planned events

Answer

Seasonality adjustments let advertisers signal to Smart Bidding that conversion rates will temporarily spike or drop during a known event, allowing the algorithm to respond correctly.

Question 5

How does the Google Ads 'maximize clicks' strategy determine bids?

Accepted Answer

It sets bids automatically to get the most clicks possible within your budget

Answer

Maximize Clicks is an automated strategy that optimizes bids to generate as many clicks as possible without exceeding the specified daily budget.

PPC - Management Practice Test

PPC - Management Practice Test

PPC PPC Bidding Strategies 3