Ben is currently managing a campaign that has a total investment of $7,000, generates 1,400 conversions, and has a CPA (cost-per-acquisition) of $5. Ben needs to sell excess inventory. To meet this goal, he’s willing to increase his CPA and campaign investment. Which of the following plans, built in the Performance Planner, will assist Ben in achieving his marketing goal of selling excess inventory?
Correct Answer
An investment of $9,600 to generate 1,600 conversions with a CPA of $6
Key takeaways
Only one option increases conversions above the current 1,400.
$9,600 at a $6 CPA buys 1,600 conversions — growth at the lowest available cost.
Extra spend that holds conversions flat is spend for nothing.
Why is this the correct answer?
Ben is at 1,400 conversions for $7,000, a CPA of $5. The option that grows the business best is $9,600 producing 1,600 conversions at a $6 CPA: it is the only choice that increases conversions above the current level, and it does so at the lowest CPA of the options that grow at all. The alternatives either buy the same number of conversions for more money or, in one case, fewer conversions for more money.
Why are the other options wrong?
An investment of $9,100 to generate 1,300 conversions and a CPA of $7
$9,100 for 1,300 conversions is worse on both counts — fewer conversions than now, at a higher cost each.
An investment of $8,400 to generate 1,400 conversions and a CPA of $6
$8,400 holds conversions flat at 1,400 while raising the CPA from $5 to $6. More spend, no more sales.
An investment of $9,800 to generate 1,400 conversions and a CPA of $7
$9,800 also holds conversions at 1,400, at a $7 CPA. It is the most expensive way to stand still.
Frequently asked questions about this topic
Why does CPA rise when you scale spend?
Because the cheapest conversions are captured first. Additional budget reaches into progressively more competitive or less qualified auctions, so each extra conversion tends to cost more than the last. A rising CPA while scaling is normal; the question is whether the marginal conversion is still worth its price.
About the Shopping Ads Certification
The Shopping Ads Certification checks that you can run retail campaigns end to end: product data in Merchant Center, linking it to Google Ads, and choosing between Standard Shopping and Performance Max to drive sales and value.
Exam guide and all 407 Google Ads Shopping questions →Related Google Ads Shopping questions
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