A marketer is keeping track of the revenue generated by his campaign. He wants to see a specified return-on-investment for his monthly ad spend. Which type of automated bidding strategy will meet his needs?
Correct Answer
A revenue-focused bidding strategy
Key takeaways
A specified return on ad spend is a revenue-focused goal.
Target ROAS and maximise conversion value weight conversions by revenue.
Conversion-focused strategies count actions without weighting by value.
Why is this the correct answer?
Wanting a specified return on monthly ad spend is a revenue goal, which puts this in the revenue-focused family — target ROAS and maximise conversion value. These strategies weight conversions by the money they bring rather than counting them equally, which is the only way to hold a campaign to a stated return. Conversion-focused strategies count actions; awareness and consideration strategies optimise further up the funnel again.
Why are the other options wrong?
An awareness-based bidding strategy
Awareness bidding covers impression and reach strategies such as target CPM. It has no revenue component.
A consideration-focused bidding strategy
Consideration is a marketing objective rather than a bidding category in Google Ads.
A conversion-focused bidding strategy
Conversion-focused strategies such as target CPA count conversions equally, so they cannot express a return on spend.
Frequently asked questions about this topic
What has to be in place before using a revenue-focused strategy?
Conversion values must be passed with the conversion — the transaction amount and currency from your purchase tag. Without values there is no revenue signal, and the strategy has nothing to optimise towards however well the campaign is otherwise set up.
Topics in this question
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
- 1Viktor will be using Revenue-focused bidding strategy. Because he has been tracking the conversions in his Display campaign for the last 30 days. He’s had 24 conversions over that time, and plans to use target return on ad spend (ROAS) as his automated bidding strategy.Explained
- 2Priya only has $500 a month to spend on her campaign, but she needs to drive as many potential customers as possible to her website. What type of automated bidding strategy would be best for Priya’s campaign?Explained
- 3Which type of automated bidding strategy is Target return on ad spend (ROAS)?Explained
- 4Rashid wants to raise awareness of his brand and build campaigns focused on branded terms. He doesn’t have much time to devote to daily bid management, so he decides to use automated bidding to lighten his workload. What automated bidding strategy should Rashid consider using?Explained
- 5Siona needs to make sure her ads are getting a minimum number of impressions on the top of the page. What type of automated bidding strategy is Siona using?Explained
- 6Millie is managing a Google Ads campaign for a new client who’s tracking all important actions post-click and values each of their conversion actions equally. What type of automated bidding strategy would be ideal for this client?Explained