Target cost-per-acquisition (CPA) bidding can help drive conversions by using your conversion history and:

Google Ads Fundamentals, Knowledge Base

Question | Explanation | Answer

Question:

Target cost-per-acquisition (CPA) bidding can help drive conversions by using your conversion history and:

a – cost-per-click (CPC) goals to raise your bid when a conversion is more likely

b – cost-per-acquisition (CPA) goals to show the optimal ad when a conversion is more likely

c – cost-per-click (CPC) goals to show the optimal ad when a conversion is more likely

d – cost-per-acquisition (CPA) goals to raise your bid when a conversion is more likely

Explanation:

And yep, welcome to one of the most confusing questions in Google Ads Fundamentals exam. This is by far the most confusing question in this exam and I was asked hundreds of times to explain it. Usually in Youtube video comments. 

Most people select the option “cost-per-acquisition (CPA) goals to raise your bid when a conversion is more likely”. And, it’s wrong. Well, the fun part is that it “was” correct. 1-2 years ago if you wanted to score 100% in AdWords Fundamentals exam (now it’s called Google Ads fundamentals but has many similar questions) you had to choose this option. It WAS correct for Google. If you look at my older Adwords fundamentals live pass videos on YouTube you’ll see that selecting this option always resulted in 100% correct score.  

But that’s no longer a case. After the recent update from AdWords to Google Ads the correct answer for Google is “cost-per-click (CPC) goals to raise your bid when a conversion is more likely”. So, what’s happened? Has something changed in Google Ads platform? No. Simply, the question is so confusing, that probably Google decided that this option is more correct. Let’s see what Google says:

So, “Target CPA is a Google Ads Smart Bidding strategy that sets bids to help get as many conversions as possible at the target cost-per-acquisition (CPA) you set”. So, it means you set a target CPA, right? Well, here is another quote fro the same Google Support article about Target CPA “Using historical information about your campaign and evaluating the contextual signals present at auction-time, Target CPA bidding automatically finds an optimal CPC bid for your ad each time it’s eligible to appear. Google Ads sets these bids to achieve an average CPA equal to your target across all campaigns using this strategy.” Now they are saying CPC in one place, and average CPA in another…. 

However, in Google Ads you can set the max CPC. In this case, max. CPC is bid that you want Google Ads to set for any keywords, ad groups or campaigns using Target CPA bidding. So IF you define a max. CPC Google Ads will use it defining bids as a limit. But setting max.cpc is optional… In this case, Google Ads will use target CPA you set. And, there is nothing said in the question about max. CPC limit. In other words, there are not enough information to answer this question correctly.

However, after passing this exam multiple times, we confirm that the “right” option for Google at the moment is “cost-per-click (CPC) goals to raise your bid when a conversion is more likely”.

Learn more on the official Google support website.

Answer:

cost-per-click (CPC) goals to raise your bid when a conversion is more likely

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