Trina is considering using automated bidding as she is looking to make her campaign management process more efficient. In what three ways can automated bidding improve efficiency? (Choose 3.)

While working from my cozy little home office (yep, with coffee in hand ☕), I was reviewing some Google Ads topics, and this one stood out! It’s about automated bidding—a life-saver if you’re tired of setting manual bids all day. I scored 98% on my Google Ads Display Certification recently, and I’m breaking down all the important bits for you, step by step. Let’s get started!

Question:

Trina is considering using automated bidding as she is looking to make her campaign management process more efficient. In what three ways can automated bidding improve efficiency? (Choose 3.)

  • Sets manual bids for specific times of the day
  • Integrates a large variety of signals to evaluate user intent
  • Minimum and maximum bid values are determined by the daily budget
  • Saves time and marketing resources
  • Sets the appropriate bid for each and every auction

Here are two correct answers:

  • Integrates a large variety of signals to evaluate user intent
  • Saves time and marketing resources
  • Sets the appropriate bid for each and every auction

If you’re interested, you can take the exam here: Google Ads Display Certification via Skillshop.

Infographic titled "Automated Bidding Efficiency in Google Ads" showing how automated bidding helps by saving time, evaluating user intent, and adjusting bids per auction.
This infographic explains how automated bidding in Google Ads boosts efficiency by saving time, analyzing real-time signals, and setting the right bid for every auction.

Why are 3 correct? Explained below

✅ 1. Integrates a large variety of signals to evaluate user intent

Automated bidding uses Google’s machine learning algorithms to analyze countless signals in real time—like location, time of day, device, browser, previous site behavior, and more.

👉 Why it helps:
Manual bidding can’t keep up with this level of complexity, but automated bidding handles it instantly, helping you target the right people at the right moment.

✅ 2. Saves time and marketing resources

Instead of guessing or adjusting bids manually, Google Ads does the heavy lifting for you.

👉 Why it helps:
You and your team can focus on strategy and creativity—like writing better ad copy or improving your landing page—while Google handles the bids.

✅ 3. Sets the appropriate bid for each and every auction

This is called “auction-time bidding.” It means Google sets the perfect bid every time your ad is about to enter a new auction.

👉 Why it helps:
No overbidding. No underbidding. Just the right bid based on the user’s intent and context—automatically.

Why the Other Options Are Incorrect

❌ Sets manual bids for specific times of the day

This is a manual bidding feature, not automated bidding.
When you’re using automated bidding, Google’s algorithm is in control of setting bids based on performance signals—not the time of day.
Manual bidding lets you say things like “bid higher in the evening,” but automated bidding looks at real-time user behavior instead of fixed schedules.

🔍 Example:
Imagine you’re running ads for a pizza shop. You think most orders come at 7 PM, so you raise your bid then. But Google’s system might detect that your ideal audience also searches at lunchtime, and you could miss those if you’re stuck with manual time-based bids.

❌ Minimum and maximum bid values are determined by the daily budget

This is a common misconception.

While your daily budget limits how much you can spend per day, it does not directly control the bid range.
Bids (especially in automated bidding) are calculated based on your selected strategy (like Target CPA or Maximize Conversions), not your budget.

🧠 Think of it this way:
Your budget = how much you’re willing to spend
Your bidding strategy = how you want to spend it

The budget tells Google how much to spend overall, but the bidding strategy tells Google how to win auctions efficiently with that money.

How Automated Bidding Improves Efficiency

OptionCorrect/IncorrectExplanation
Integrates a large variety of signals to evaluate user intent✅ CorrectAutomated bidding uses machine learning to analyze millions of signals like device, location, time, and user behavior to set smarter bids.
Saves time and marketing resources✅ CorrectIt reduces manual workload by automatically adjusting bids based on goals and data, saving marketers hours of optimization work.
Sets the appropriate bid for each and every auction✅ CorrectThis is known as “auction-time bidding,” which allows Google to tailor bids in real time for every ad opportunity.
Sets manual bids for specific times of the day❌ IncorrectThis is a manual strategy. Automated bidding doesn’t rely on fixed schedules; it adjusts in real time using smarter signals.
Minimum and maximum bid values are determined by the daily budget❌ IncorrectBudgets are separate from bid limits. Automated strategies may use bid limits, but not automatically based on the daily budget.

Real-Life Example

Trina runs a small online store that sells handmade jewelry. She used to manually adjust bids every evening after dinner. It was exhausting and she often guessed wrong, either overspending or losing impressions.

She switched to Target CPA (an automated bidding strategy) and let Google handle the bidding. Within a month, she noticed:

  • 🕒 She saved 4–5 hours/week
  • 📈 Her conversion rate improved by 22%
  • 💰 Her cost-per-conversion dropped by 18%

Now Trina spends more time designing new products—and less time worrying about her ad bids.

FAQs

Q1: Do I lose control with automated bidding?

Not at all. You can still set goals like Target CPA or ROAS. Google just does the math faster.

Q2: Is auction-time bidding really better?

Yes! Google reacts in real time, unlike manual settings that are the same for every auction.

Q3: Can I switch back to manual bidding if needed?

Yes, you can test both. But many advertisers stick with automated after seeing the results.

Q4: Is automated bidding good for beginners?

Absolutely! It’s great if you’re just getting started and don’t want to spend hours adjusting settings.

Conclusion

Automated bidding is a smart move for any marketer like Trina who wants to save time and get better results. By letting Google’s machine learning handle the heavy lifting — like analyzing signals and adjusting bids in real time — you can focus more on strategy and creativity. Just remember, not every feature is automated. Stick with what actually improves efficiency: smarter signals, auction-time bidding, and saving your energy for the bigger picture.

💡 Let automation do the work — and you can sip your coffee while your campaign gets optimized behind the scenes!

Now, if you are ready, you can take the Google Skillshop test for the Google Ads Display Exam. Want more real exam questions with easy answers like this? Follow along — I’ll be breaking down more Google Ads Display Measurement Certification Free examples in the next posts.