You own a small business that sells shoes. You’re ready to run your first Smart Shopping campaign that uses a set budget. How does the system allocate budget on a Smart Shopping campaign?
- Budget is automatically allocated across channels, based on performance. You don’t need to create a separate campaign for each channel.
- Budget is manually allocated by campaign, so you’ll need to create a separate campaign by channel and budget.
- Budget is manually allocated across channels, based on your channel preference. You have control over the campaign setup while manually optimizing by channel.
- Budget is automatically allocated by campaign, so you’ll need to create a separate campaign by channel, and Smart Shopping will optimize budget.
Explanation:
The correct answer is **Budget is automatically allocated across channels, based on performance. You don’t need to create a separate campaign for each channel.** In a Smart Shopping campaign, the system automatically distributes the budget across different Google platforms and networks, such as Google Search, Google Display Network, YouTube, and Gmail, based on the performance of each channel. This automation eliminates the need for manual allocation and separate campaigns for each channel, simplifying the campaign management process for small business owners like yourself. By leveraging machine learning algorithms, Smart Shopping campaigns optimize budget allocation in real-time, directing more funds towards channels that drive the best results, such as clicks, conversions, or return on ad spend (ROAS). This dynamic allocation ensures that your advertising budget is effectively utilized to maximize the campaign’s performance and achieve your business objectives, whether it’s increasing sales, driving website traffic, or improving brand visibility.