Question 1
AdvancedBidding Strategies and Campaign Optimization · Troubleshooting Video Action Campaign Performance
A direct-to-consumer mattress company is running a Video Action campaign with a 'Maximize conversions' bidding strategy. After three weeks, the campaign's cost-per-acquisition (CPA) is 30% higher than the target, and the budget is not being fully spent. The campaign is using optimized targeting with remarketing lists as signals. Which initial action is most likely to improve performance while scaling spend?
Answer and explanation
Correct answer: B
The campaign is under-spending and has a high CPA, which suggests the algorithm is struggling to find enough converting users with the current signals. Broadening the audience signals by adding relevant in-market segments gives the 'Maximize conversions' strategy more data to work with, allowing it to find more potential converters and scale spend more effectively, which should in turn help lower the average CPA. Switching to Target CPA immediately while under-spending could further restrict reach. Narrowing the audience would worsen the spend issue. Changing the creative is a valid optimization step but should be done after addressing targeting and bidding constraints.
