What are key factors to keep in mind when choosing a bidding strategy for your campaign?

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Bhupati Barman

Multiple-choice graphic showing key factors to consider when choosing a bidding strategy in Google Ads, with the correct answer marked.

I recently passed the Google Ads Display Certification exam (yep, right from my cozy little desk at home!) and scored over 95%. 🎯 Felt amazing, honestly. One of the questions really stuck with me — not because it was tough, but because it helped me finally understand how bidding strategies actually work in Google Ads.

In this post, I’ll break down that exact question, explain the correct answer in simple terms, and show you why the other choices were just a bit off. Plus, I’ll share a real-life example, an easy chart, and a few fun tips to help you pass the test too. Let’s go!

Happy man at home desk smiling after passing Google Ads Display Certification with laptop showing “PASSED” screen and framed certificate on wall.
Scored over 95% on the Google Ads Display Certification exam — straight from my cozy little home office!

Question:

What are key factors to keep in mind when choosing a bidding strategy for your campaign?

  • Targeting, auctions, and campaign cost-per-click
  • Location, calls-to-action, and user conversion costs
  • Performance, auctions, and user journey complexities
  • Budget, competition, and user thought processes

The correct answer is: ✅ Performance, auctions, and user journey complexities

If you are interested, you can take the exam on Google Ads Display Certification.

Why “Performance, auctions, and user journey complexities” is the correct answer

When you’re running a Google Ads campaign, your bidding strategy decides how much Google should bid in real-time to win ad space. Picking the right bidding strategy isn’t about guessing — it’s about understanding your goals, audience behavior, and how competitive the market is.

Let’s break it down:

1. Performance

Performance = what you care about the most — clicks, conversions, or views.

  • Example: If your goal is sales, choose strategies like Target ROAS.
  • If you want more traffic, Maximize Clicks may be better.

2. Auctions

Google Ads runs on auctions, and the environment can be unpredictable.

  • High competition = higher cost
  • Low competition = better chance to get visibility on a smaller budget

You need to pick a strategy that responds smartly to auction conditions.

3. User Journey Complexities

Not everyone buys the moment they see your ad.

  • Some users research first, others compare prices.
  • You need a strategy that fits where the user is in their journey.

Real-life Example:

Imagine Sarah, a small business owner selling handmade jewelry who was struggling to get sales through her website. She had been spending money on ads, but most visitors clicked and left without buying. Frustrated but determined, she decided to dig into her campaign data.

She started with a Maximize Clicks strategy to get traffic. But she soon realized people don’t buy right away — they browse, come back later, and then purchase.

So, she switched to Maximize Conversions with a smart bidding strategy and started tracking performance using Google Ads’ built-in conversion tracking and Google Analytics.

That small tweak? It doubled her sales in just 3 weeks. 🎯

Line chart showing weekly sales before and after switching to Maximize Conversions bidding strategy in Google Ads
Sarah doubled her sales in 3 weeks after switching from Maximize Clicks to Maximize Conversions in Google Ads.

Why the other options are incorrect

❌ Targeting, auctions, and campaign cost-per-click

  • Targeting controls who sees your ads (age, location, interest), not how much you’re willing to pay to reach them.
  • Think of targeting like choosing the right room to speak in, while bidding is how loudly you speak to get attention.
  • Campaign cost-per-click (CPC) is a result of bidding strategy, not a factor for choosing it.

❌ Location, calls-to-action, and user conversion costs

  • These are creative and structural elements.
  • Location is set at the campaign level.
  • Calls-to-action influence ad engagement but not bidding logic.

❌ Budget, competition, and user thought processes

  • While budget and competition are relevant, user thought processes is too vague to guide your bidding strategy.
  • Doesn’t connect clearly with Google Ads’ smart bidding options.

Smart Bidding Strategy Simplified

FactorWhy It Matters
Performance GoalsDefines what success looks like (clicks, sales)
Auction EnvironmentHelps adapt bids in competitive markets
User Journey ComplexityAdjusts bids based on where users are in the funnel

FAQs

Q: What if I’m just starting out with a small budget?
A: Start with “Maximize Clicks” or “Maximize Conversions.” As you gather data, you can try advanced strategies like “Target CPA.”

Q: Do bidding strategies change automatically?
A: Nope. You set them manually — but Smart Bidding strategies adjust automatically based on performance.

Q: Can I run different strategies for different campaigns?
A: Absolutely. You can test what works best for each goal.

Real-Time Tip:

As of 2025, Smart Bidding strategies (like Target ROAS and Target CPA) are recommended by Google for most advertisers — because they use machine learning to adapt faster than humans can.

Resource Links:

Conclusion

Don’t just guess your bidding strategy. Think about how your audience behaves, how tough the competition is, and what you actually want to achieve. Pick the strategy that feels like a smart assistant, working for you — even while you sleep 😴.

Top 3 Takeaways:

  1. Choose your bidding strategy based on performance goals, not guesses.
  2. Understand how auctions work — more competition means higher bids.
  3. Think about the full user journey — from ad click to final purchase.

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!