Molly wants to clear her remaining stock in preparation for ordering a new line of products to sell. As a result, she’s willing to increase her CPA (cost-per-acquisition) and investment, as long as it means generating more sales. Her current campaign has a total investment of $25,500, generates 1,500 conversions, and has a CPA of $17. Which plan, built in the Performance Planner, will help Molly with her marketing goal to generate more sales?
Correct Answer
An investment of $40,000 to generate 2,000 conversions and a CPA of $20
Key takeaways
The goal is maximum conversions, not minimum cost per conversion.
2,000 conversions at $20 CPA for $40,000 clears the most stock.
A lower CPA is the right answer only when efficiency is the objective.
Why is this the correct answer?
Molly's goal is volume: clear the stock, and she has said she will accept a higher cost per acquisition to do it. So the right choice is the option that produces the most conversions, which is 2,000 at a CPA of $20 for $40,000. The cheaper options each deliver fewer conversions, and a lower CPA is not the objective here — it would be if she were optimising for efficiency, but she is optimising for throughput.
Why are the other options wrong?
An investment of $30,000 to generate 1,500 conversions and a CPA of $20
1,500 conversions at the same $20 CPA is 500 fewer sales for $10,000 less spend. Efficient, but it leaves stock unsold.
An investment of $28,000 to generate 1,400 conversions and a CPA of $20
1,400 conversions is fewer again, at the same cost per acquisition.
An investment of $21,000 to generate 1,400 conversions and a CPA of $15
A $15 CPA is the most efficient option here, but 1,400 conversions clears the least stock of the higher-volume choices. Efficiency is not the goal she stated.
Frequently asked questions about this topic
When is a higher CPA the right business decision?
When volume matters more than margin on that transaction: clearing seasonal stock, launching a product, or acquiring customers you expect to buy repeatedly. The CPA only makes sense judged against what the conversion is worth to you, not in isolation.
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
- 1Ben 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?Explained
- 2Rebecca is a marketing executive at an airline company. She has been asked to plan her company’s online advertising budget on a monthly basis. She’s chosen Google Ads’ Performance Planner to help accomplish this task. What are two advantages Performance Planner offers Rebecca?Multiple correct
- 3Peter has a new online store selling electric bikes. He wants to promote his business by using a simple solution that provides a wide reach for his products. How can Smart Shopping campaigns help Peter with his sales?
- 4Gemma wants to promote her online handbag business to a wide audience But she’s busy creating handbags for her clients, and has little time to manage the specifics of an advertising campaign. How can Smart Shopping campaigns help her achieve this?
- 5You’re optimizing the Shopping campaign for an online jewelry retailer promoting its new line of engagement rings. If you know that people who research engagement rings across multiple devices take longer to convert, what should you do to help this client better attribute the impact mobile has on its sales?
- 6Paige has an online dress boutique that sells dresses for women and children. She just got a new shipment of pink polkadot girls dresses. How can a Shopping campaign help Paige target her inventory?