Do you want to gain Google Ads – Measurement Certification in a short time, but don’t know the perfect way how? In this content, I’ll explore one question with a perfect solution on how to choose the right answer. If you want all questions and answers, then you have to follow our Google Ads Measurement Certification Study Guide for free.
Now, come to today’s main topic. If you’re a business owner planning to use Google Ads to advertise your website or business, you might have heard about Smart Bidding strategies. These are automated bidding methods that use Google’s machine learning to help you get the best results. But with several options available, it can be confusing to know which ones are Smart Bidding strategies.
Let’s clear this up and explain which option is actually a Smart Bidding strategy. So, no delay. Let’s start.
Question
A business owner wants to use Google Ads to advertise their website. They’re considering using one of the available Smart Bidding strategies that Google offers. Which of the following is a Smart Bidding strategy?
- Manual CPC
- Viewable CPM
- Enhanced impressions
- Target CPA
Correct Answer
✅ Target CPA
Why target CPA is a smart bidding strategy
Target CPA stands for Target Cost Per Acquisition. It means you tell Google how much you want to pay for each conversion, like a sale or a sign-up, and Google tries to get you as many conversions as possible at that price.
Here’s why Target CPA is a smart bidding strategy:
- It’s automatic: You don’t have to set bids yourself for every keyword or ad. Google uses its computer system to decide the best bid for each auction in real-time.
- It uses smart technology: Google looks at lots of signals like the person’s device, location, time of day, and even the type of browser, to figure out who is more likely to convert.
- It focuses on results: Instead of just getting clicks, Target CPA focuses on getting actual conversions, like sales or sign-ups, at your target cost.
- It saves time and effort: Because Google does the bidding work for you, you can spend more time on other parts of your business or marketing.
For example, if you set a Target CPA of $20, Google Ads will try to get you conversions that cost about $20 each. If a click seems less likely to lead to a conversion, Google will lower your bid. If the click seems very likely to convert, Google will increase your bid.
This way, your ad budget is spent more wisely, helping you get the best value for your money.
Why the other options are not smart bidding strategies
We already know that Target CPA is the correct answer, but a common question is why the other options are incorrect. Let’s talk about why the other choices aren’t Smart Bidding strategies. So, no delay—let’s begin the full solution.
1. Manual CPC
Manual CPC means you decide how much to pay for each click on your ad. You set the bids yourself, and Google doesn’t change them automatically. This gives you full control but takes more time and effort.
Because you have to manage all the bids manually, it’s not a Smart Bidding strategy. Smart Bidding means Google uses its technology to adjust your bids automatically to get the best results.
2. Viewable CPM
Viewable CPM means you pay for every 1,000 times your ad is actually seen by people, usually on display ads. It’s good for making people aware of your brand, but it doesn’t focus on getting clicks or sales.
Since it doesn’t use Google’s automatic bidding to get more clicks or conversions, it’s not considered Smart Bidding.
3. Enhanced Impressions (Probably Enhanced CPC)
This one might be a little confusing. It’s likely talking about Enhanced CPC, which is kind of a mix. You still set your bids, but Google can raise or lower them a little bit when it thinks it can get you more conversions.
Because it’s only partly automatic, and you still control most bids, it’s not a full Smart Bidding strategy like Target CPA.
In Short
- Manual CPC: You manage all the bids yourself.
- Viewable CPM: Pay for views, not clicks or conversions.
- Enhanced CPC: Google helps a bit, but you still mostly control bids.
Only bidding strategies like Target CPA use full automation and smart technology to get you the best conversions.
Real life example
Christopher, imagine you run an online store selling handmade crafts. You want to increase sales through Google Ads but don’t have the time to adjust bids for every keyword. You choose Target CPA bidding and set your goal to spend no more than $15 for each sale.
Google’s system starts analyzing your ads and user behavior. It automatically increases bids when a visitor looks more likely to buy and lowers bids for less likely clicks. Over time, you see more sales happening around your target cost per acquisition. This saves you time and helps you get better results without manual bidding.
Comparison table
| Bidding Strategy | Automation Level | What You Pay For | Best For | Smart Bidding? |
|---|---|---|---|---|
| Manual CPC | Manual control | Cost per click (CPC) | Advertisers wanting full control | No |
| Viewable CPM | Automated bidding for impressions | Cost per 1,000 viewable impressions | Brand awareness campaigns | No |
| Enhanced Impressions (likely Enhanced CPC) | Semi-automated (adjusts manual bids) | Cost per click (CPC) with adjustments | Beginners wanting some automation | No (partially) |
| Target CPA | Fully automated | Cost per conversion (CPA) | Advertisers focusing on conversions | Yes |
Resource links
- Google Ads Help: About Smart Bidding
- Google Skillshop: Smart Bidding Strategies Course
- How Target CPA Works
Conclusion
If you want to use a Smart Bidding strategy to get the most conversions for your Google Ads budget, Target CPA is the way to go. It uses automation and machine learning to optimize bids in real-time, helping you meet your cost-per-conversion goals without constant manual adjustments.
Understanding the difference between Target CPA and other bidding methods like Manual CPC and Viewable CPM will help you choose the right strategy for your advertising goals.
Finally, I can say that if you are ready, you can take the exam on Skillshop – Google Ads Measurement Certification. If you want more real exam questions and answers like this one, which have already been covered, follow along. I’ll be breaking down more Google Ads Measurement Certification exam questions with full solutions in the next posts on Google Ads!
FAQs
What is the difference between Target CPA and Manual CPC?
Target CPA is automated and adjusts bids to get conversions at your target cost, while Manual CPC requires you to set bids manually for each click.
Can I switch from Manual CPC to Target CPA?
Yes, you can switch bidding strategies anytime, but it’s best to have some conversion data before using Target CPA for better results.
Is Viewable CPM a Smart Bidding strategy?
No, Viewable CPM is focused on impressions and does not use automated bidding based on conversions.
What is Enhanced CPC?
Enhanced CPC is a semi-automated bidding method where Google adjusts your manual bids to help get more conversions, but it is not fully automated like Target CPA.
- About the Author
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Bhupati Barman is a Co-founder of Mite Art, as well as an Entrepreneur, SEO Optimizer, and Blog Writer, covering a variety of interesting topics.