When choosing a maximum cost–per–click (max. CPC) bid, you should consider the amount that you make from a purchase because you want to set a bid amount that’s:

Google Ads Fundamentals, Knowledge Base

Question | Explanation | Answer

Question:

When choosing a maximum cost–per–click (max. CPC) bid, you should consider the amount that you make from a purchase because you want to set a bid amount that’s:

a – based on how much your product is worth

b – the same amount as the revenue generated by your product

c – the same amount as the profit generated by your product

d – 50% of how much your product is worth

Explanation:

Choosing the right bid is essential for your campaigns. Often finding the optimal bid for your specific business is a long process which requires multiple tests. In other words, there’s no single recommended bid amount that works perfectly for everyone. The bid you choose will depend on your campaign, goals, cost of keywords, location, industry, and many other factors. However, the first thing you should consider is how much a click and your product worth. If you’re selling new cars a bid of 0.10 USD will look just funny. Also, if your product is priced 1 USD, you just can’t pay 2USD for a click. 

Tip: If you’re just starting out in Google Ads, make a budget and bid amount that you’re comfortable with. One of the most common mistakes I see is overspending. Usually, small businesses owners who tend to manage their accounts themselves stop after few weeks saying that it’s too expensive for them. In most cases that happens because of bad account structure, poor optimization, and not tailored bids.  

Learn more on the official Google support website.

Answer:

based on how much your product is worth

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