You manage marketing for a small business on a tight budget and you need to drive as many conversions as possible. In which two ways can Google Ads help?

|

Lata Bala

Google Ads for small business

You manage marketing for a small business on a tight budget and you need to drive as many conversions as possible.

In which two ways can Google Ads help?

  • Google’s planning, campaign setup, and optimization tools can help set an average daily budget for your goals.
  • Google can help you set a fixed daily budget to align with your marketing goals and maximize your performance.
  • Google can automatically adjust your daily budget through AI to keep in alignment with your performance goals.
  • Google has Smart Bidding strategies to help you maximize conversions at your average daily budget goals.

The correct answers are:
✅ Google’s planning, campaign setup, and optimization tools can help set an average daily budget for your goals.
✅ Google has Smart Bidding strategies to help you maximize conversions at your average daily budget goals.

"How Google Ads Helps Small Businesses on Tight Budgets," highlighting planning tools for budget setting, Smart Bidding to maximize conversions, and benefits like saving time and improving performance. Includes icons representing budget planning, AI, and conversion growth.
Infographic explaining how Google Ads helps small businesses with tight budgets through planning tools and Smart Bidding strategies.

Full breakdown: Why correct and others incorrect:

✅ Correct Answers:

1. Google’s planning, campaign setup, and optimization tools can help set an average daily budget for your goals

Why it’s correct:
Google Ads provides tools like:

  • Performance Planner
  • Budget recommendations
  • Campaign setup guidance

These tools help you set realistic daily budgets based on:

  • Your conversion goals
  • Past campaign performance
  • Expected auction trends

Example:
A small business selling handmade jewelry can use Google’s tools to set an average daily budget that aligns with their goal of generating 10 sales per week without overspending.

2. Google has Smart Bidding strategies to help you maximize conversions at your average daily budget goals

Why it’s correct:
Smart Bidding strategies like:

  • Maximize Conversions
  • Target CPA
  • Target ROAS

These automate bid adjustments to help you get the most conversions possible within your daily budget. Google’s AI adjusts bids in real-time based on:

  • Device
  • Location
  • Time of day
  • User behavior

Example:
A local gym sets a $20/day budget and uses Maximize Conversions bidding. Google automatically bids more for high-converting times (e.g., evenings when people search for gyms) without going over budget.

❌ Why the Other Options Are Incorrect:

OptionWhy Incorrect
Google can help you set a fixed daily budget to align with your marketing goals and maximize your performance.❌ Google does not set fixed daily budgets automatically. You set an average daily budget, but actual daily spend may vary slightly.
Google can automatically adjust your daily budget through AI to keep in alignment with your performance goals.❌ Google does not automatically change your set daily budget. It may slightly exceed the daily budget on high-traffic days but stays within the monthly limit.

Summary:

BenefitValid?Reason
✅ Planning & setup tools help set budgetsYesTools assist with budget estimation and goal alignment
✅ Smart Bidding maximizes conversionsYesUses AI to adjust bids and optimize results within budget
❌ Fixed daily budget setting by GoogleNoAdvertiser sets budgets; Google provides recommendations
❌ Automatic daily budget changes by AINoGoogle doesn’t change advertiser-defined budgets

Additional Resources:

Conclusion:

For small businesses with limited budgets, Google Ads’ planning tools help you set a reasonable daily budget, while Smart Bidding ensures you get the most conversions possible within that budget.
This combination maximizes ROI without requiring constant manual adjustments.

FAQs:

Q: Can Google automatically increase my daily budget?
A: No. Google may spend slightly over your set daily budget on high-traffic days but stays within the monthly limit. It does not change your budget automatically.

Q: What’s the best Smart Bidding strategy for tight budgets?
A: Maximize Conversions is often the best starting point.

Q: Will Smart Bidding work without a lot of past data?
A: It can, but it improves over time as Google gathers more data about your campaign.

Now, if you are ready, then you take the Google Skillshop test for the Google Ads Search Exam. If you want more questions about the Google Ads Search Certification Exam, follow.