Your client gets more conversions from ads that appear to people in Tokyo. What actions should you take to try and increase the number of conversions for this client?
Correct Answer
Use a location bid adjustment to increase bids for customers in Tokyo
Why is this the correct answer?
To effectively increase the number of conversions for a client who already gets more conversions from ads that appear to people in Tokyo, you should use a location bid adjustment to increase bids for customers in Tokyo. This mechanical adjustment allows you to increase or decrease your bid's competitiveness based on the user's geographic location. By applying a positive percentage adjustment specifically to Tokyo, your ads are more likely to appear in higher positions or win more auctions for users in that high-performing region. This targeted approach leverages your existing performance data to maximize ROI without needing to restructure your entire campaign. It ensures that your budget is prioritized for the traffic that has already proven to have a higher intent and conversion rate, making it the most efficient way to scale success in a specific city.
Why are the other options wrong?
Create a separate ad group to target ads and bids for Tokyo
Creating a separate ad group for Tokyo is an inefficient use of resources that can lead to data fragmentation. This structural change makes it harder for automated bidding strategies to gather enough data for optimization and increases management complexity without providing the direct bidding control that a simple adjustment offers.
Use the user location view to understand if people who click your ads are located in Tokyo
The user location view is an analytical reporting tool designed to help you understand where your traffic originates, not a tactical action to drive more volume. While it helps confirm that Tokyo is a high-performing area, checking a report does not change your bids or improve your ad's competitiveness in those auctions.
Refine where your ads show by adding the keyword “Tokyo”
Adding the keyword 'Tokyo' to your campaign changes the nature of the user's search intent rather than targeting the user's location. This would limit your ads to showing only when someone explicitly types 'Tokyo' in their query, likely missing out on a large volume of Tokyo-based users who are searching for your product using general terms.
Real-world example
A regional travel agency noticed that while they ran nationwide ads in Japan, their conversion rate was nearly double for users located in the capital. To capitalize on this trend, they decided to use a location bid adjustment to increase bids for customers in Tokyo by 30%. This allowed their ads to consistently appear in the top three positions for Tokyo-based searches. As a result, the agency saw a 22% increase in total package bookings from that region within six weeks, while their cost-per-acquisition remained stable due to the high conversion efficiency of the Tokyo audience.
Official documentation: https://support.google.com/google-ads/answer/2732132
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About the Google AdWords Fundamentals Exam (Retired)
The AdWords Fundamentals exam was retired when AdWords became Google Ads.
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