Which bidding option is described as targeting cost-per-acquisition (CPA) bidding?

Which bidding option is described as targeting cost-per-acquisition (CPA) bidding?

• A. Target cost-per-acquisition (CPA) bidding
• B. Target ROAS bidding
• C. Maximize conversions bidding
• D. Cost-per-thousand-impressions bidding

Answer: (A)

This item tests understanding of what target CPA bidding means in Google Ads. Target CPA bidding is a Smart Bidding strategy where you set a target cost per acquisition. The system then automatically adjusts bids across auctions to try to achieve as many conversions as possible at or below that target CPA, using historical conversion data and real-time signals. It’s all about controlling how much you pay per conversion. This differs from targeting ROAS, which aims to maximize the return on ad spend rather than the cost per conversion. It also differs from maximizing conversions, which seeks to generate as many conversions as possible within your budget but without a defined cost per conversion target. Lastly, cost-per-thousand-impressions bidding focuses on impressions (CPM) rather than conversion costs, so it isn’t about acquisitions at a target price. So the option that describes targeting cost-per-acquisition bidding is the one that sets a target CPA for each auction.

This item tests understanding of what target CPA bidding means in Google Ads. Target CPA bidding is a Smart Bidding strategy where you set a target cost per acquisition. The system then automatically adjusts bids across auctions to try to achieve as many conversions as possible at or below that target CPA, using historical conversion data and real-time signals. It’s all about controlling how much you pay per conversion.

This differs from targeting ROAS, which aims to maximize the return on ad spend rather than the cost per conversion. It also differs from maximizing conversions, which seeks to generate as many conversions as possible within your budget but without a defined cost per conversion target. Lastly, cost-per-thousand-impressions bidding focuses on impressions (CPM) rather than conversion costs, so it isn’t about acquisitions at a target price.

So the option that describes targeting cost-per-acquisition bidding is the one that sets a target CPA for each auction.