Which of the following is an example of a Smart Bidding strategy?
- Manual CPC
- Enhanced impressions
- Target CPA
- Viewable CPM
Explanation:
The correct answer is **’Target CPA.’** Target CPA (Cost Per Acquisition) is a Smart Bidding strategy offered by Google Ads that utilizes machine learning and historical data to automatically adjust bids in real time to achieve a specified target CPA. This strategy is particularly beneficial for advertisers aiming to maximize conversions while maintaining a set budget. By setting a target CPA, advertisers indicate the average amount they are willing to pay for each acquisition or conversion. Google’s machine learning algorithms then analyze various factors, such as user behavior, device, location, time of day, and more, to determine the optimal bid for each auction. Through continuous optimization, Target CPA bidding aims to drive conversions at the desired cost, efficiently allocating budget to the most promising opportunities. Unlike manual CPC bidding, where advertisers manually set bids for each click, Target CPA bidding automates the bidding process, leveraging advanced algorithms to deliver optimal results. This strategy empowers advertisers to achieve their conversion goals more effectively while saving time and effort on bid management, making it a prime example of a Smart Bidding strategy within Google Ads.