Data Shows that Your Client’s Ad that Appears to People in San Francisco Gets 120 Conversions at A Cost of Us$1200 and Cost-Per-Acquisition (cpa) of Us$10, While Ads Showing in Houston Get 70 Conversions at A Cost of Us$1400 and Cpa of Us$20. if You Have a Cpa Goal of Us$12, What Bid Adjustment Would You Set for Each Location?

Data shows that your client’s ad that appears to people in San Francisco gets 120 conversions at a cost of US$1200 and cost-per-acquisition (CPA) of US$10, while ads showing in Houston get 70 conversions at a cost of US$1400 and CPA of US$20. If you have a CPA goal of US$12, what bid adjustment would you set for each location?

  • +20% for San Francisco, -40% for Houston
  • +40% for San Francisco, -40% for Houston
  • +40% for San Francisco, -20% for Houston
  • +20% for San Francisco, -20% for Houston

Right Answer:

  • +20% for San Francisco, -40% for Houston

Explanation:

https://support.google.com/google-ads/answer/2732132?hl=en

Choosing a bid amount is extremely important for the Ad campaign that you are interested in launching, for the potential consumers from your own target locations or anything.

The parameters that depend on choosing the correct bid amount for your Ad campaign are as follows:

  • Your campaign type
  • The cost of your keywords
  • The success of your keywords

When you fix a maximum Cost Per Click bid in a fresh crusade, it’s implemented to the keywords you choose for your ad group. You can modify this ad group default bid at any point in time. If specified keywords are more suitable for your business than others, you can pick to establish various bids for them in order to improve your prospects of possessing your ad to surface when people search with those keywords.

These are called keyword bids. To make changes to individual keywords, click the bid amount in the “Maximum Cost Per Click” column for that keyword.

Similarly, you can increase or decrease your bids accordingly as well. These depend on a few factors such as:

  • type of device
  • time of the search
  • the particular location of the search etc.

If you have any doubts regarding the question Data shows that your client’s ad that appears to people in San Francisco…do leave us a comment in here.

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