Question 1
IntermediateSmart Bidding and Automation · Selecting an appropriate bidding strategy for a new campaign
A financial services firm is launching a new Search campaign to generate leads for their mortgage refinancing product. The marketing team has a strict Cost Per Acquisition (CPA) target of $150. The campaign is new, so there is no historical conversion data within the Google Ads account. Which bidding strategy should the campaign manager select to begin the campaign while working towards the CPA goal?
Answer and explanation
Correct answer: C
Enhanced CPC (eCPC) is the optimal choice for a new campaign with no historical conversion data. eCPC starts with manual bids, giving the manager initial control, but uses Google's AI to adjust bids up or down for clicks that seem more or less likely to lead to a conversion. This allows the campaign to gather crucial conversion data. Once enough data is collected (typically 15-30 conversions in 30 days), the manager can confidently switch to a fully automated strategy like Target CPA. Starting directly with Target CPA or Maximize Conversions without data can lead to poor performance or minimal ad delivery as the system has no information to optimize against.
