Which Smart Bidding strategy optimizes for value?
- Target Impression Share
- Maximize clicks
- Target ROAS
- Maximize conversions
Explanation:
The correct answer is **Target ROAS (Return on Ad Spend)**. Target ROAS is a Smart Bidding strategy that optimizes for value by aiming to maximize the conversion value based on a target ROAS set by the advertiser. ROAS is a crucial metric for measuring the effectiveness of advertising campaigns, as it indicates how much revenue is generated for every dollar spent on advertising. By utilizing Target ROAS, advertisers can specify their desired return on investment and let Google’s machine learning algorithms adjust bids in real time to maximize the conversion value while achieving the set ROAS target. This strategy is particularly beneficial for advertisers looking to maximize the value of their advertising spend by prioritizing conversions with higher returns, ultimately leading to more efficient and effective advertising campaigns.