What are two benefits of automated bidding? (Choose two.)

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Bhupati Barman

Flat-style digital illustration showing a multiple-choice quiz on the benefits of automated bidding in Google Ads, with two correct answers highlighted.

I was sipping chai in my cozy little workspace at home and brushing up on some Google Ads Display questions when this one popped up. It looked simple at first, but I quickly realized how powerful the answer could be for campaign management. I’ve recently completed my Google Display Ads certification with a 98% score, and I’m breaking down real exam questions one at a time. Let’s Start,

Question:

What are two benefits of automated bidding? (Choose two.)

  • Cross analysis
  • Time saving
  • Higher CPAs
  • Competitive analysis
  • Guaranteed results

Here are two correct answers:

✅ Time saving

✅ Competitive analysis

Bar chart showing five options about automated bidding benefits, with "Time saving" and "Competitive analysis" marked as correct answers in green.
This bar chart compares five answer choices to identify the correct benefits of automated bidding: “Time saving” and “Competitive analysis.”

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

Why These Answers Are Correct:

🕒 Time Saving

One of the best parts of using automated bidding in Google Ads is how much time it saves. No more logging in daily to change bids manually for every keyword, device, or location. Google’s Smart Bidding system does the hard work for you — using machine learning to make fast, smart decisions in real time.

Example:
Maya, a solo digital marketer, used to spend hours each week adjusting bids. After switching to Smart Bidding, she had more time for creative strategy and planning — and her conversions actually increased. 🎯

📊 Competitive Analysis

Automated bidding adjusts your bids in real-time based on how competitive the auction is. If your ad is up against high competition, Google can increase your bid to help win that placement. If competition is low, it may reduce your bid to save budget.

Example:
Jake runs a local travel agency. During peak booking season, Google Ads noticed more competition in his niche and automatically raised his bids — helping him stay visible without overspending.

Why the Other Options Are Incorrect

❌ Cross analysis

While important in general campaign management, cross analysis refers to comparing different campaigns, data sets, or channels — like comparing how Search performs vs Display. This is a task you do in Google Ads reports, Google Analytics, or spreadsheets.

📌 Why it’s not a benefit of automated bidding:
Automated bidding focuses on setting the right bid during auctions — not on analyzing campaign data across platforms. That’s your job as the marketer (or your analytics tools).

❌ Higher CPAs

Let’s be real — higher cost-per-acquisition (CPA) is never a benefit. It’s a red flag 🚩.

📌 Why it’s incorrect:
The entire point of automated bidding — especially strategies like Target CPA or Maximize Conversions — is to bring your CPA down, not up. If your CPAs are rising, there may be other issues like poor landing pages, irrelevant audiences, or limited budget.

❌ Guaranteed results

This one sounds tempting, but it’s misleading.

📌 Why it’s incorrect:
Google Ads never guarantees performance. Automated bidding improves your chances by optimizing for your goals (like conversions or ROAS), but success still depends on your:

  • Ad quality
  • Landing page experience
  • Budget & competition
  • Offer relevance

Automated bidding is a tool, not a magic wand.

Summary Chart:

OptionCorrect?Why
Cross analysis❌ NoReporting tool; not a bidding function
✅ Time saving✅ YesSaves hours of manual work
Higher CPAs❌ NoNot a benefit — Smart Bidding aims to lower CPA
✅ Competitive analysis✅ YesBids adjust based on auction competition
Guaranteed results❌ NoResults depend on campaign quality, not automation

Real-World Example

Emma runs an online store for handmade leather bags. She used manual bidding for over a year — checking and adjusting bids daily. It was tiring and slow.
Then she switched to Target CPA automated bidding. Within 30 days:

  • Her cost-per-conversion dropped by 21%
  • She saved 6+ hours a week
  • Her ads performed better during peak shopping hours without manual effort

She called it “my behind-the-scenes assistant.” ✅

FAQs (Frequently Asked Questions)

Q1: What’s the main goal of automated bidding?

To help you get more conversions or clicks while spending your budget efficiently, with less manual work.

Q2: Does it really save time?

Yes! You no longer need to update bids daily. Google’s algorithm does it for you.

Q3: Can I still control the campaign goals?

Absolutely. You set the goals (like conversions, CPA, or ROAS). Google just handles the bids.

Q4: Does it help with competitive bidding?

Yes. Smart Bidding adjusts in real time depending on competition, which is something you can’t do manually 24/7.

Q5: Does it guarantee results?

No. Performance depends on your ads, targeting, landing page, and budget. There’s no magic — just better optimization.

Q6: Is this better for beginners or pros?

Both. Beginners love the simplicity, and pros use it to scale smarter without burning out.

Q7: Is a learning period required?

Yes, usually 7–14 days. This is when Google Ads tests different bidding patterns to optimize performance.

Q8: Can I switch back to manual bidding?

Yes. You can test both and choose what works best. Many advertisers start with automation and never go back.

Helpful Resource Links

Conclusion:

Automated bidding in Google Ads is a powerful time-saver and a smart way to stay competitive in real-time auctions. It helps you focus on big-picture strategy while Google handles bid adjustments in the background.

So if you’re looking for time savings and smarter competitive positioning, automated bidding has your back. ✅

Let Google’s smart system work — while you get back to building your brand.

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.