An e-commerce client wants her campaign to be more profitable. After calculating this client’s total profits from Google Ads, what can you do to start maximizing results for profit?
Correct Answer
Test different cost-per-click (CPC) bids
Why is this the correct answer?
To start maximising results for profit after calculating total profits from Google Ads, you should test different cost-per-click (CPC) bids. Once you know the profit generated per conversion, you can calculate the maximum CPC you can afford while remaining profitable. Testing different bid levels helps find the optimal point where ad spend generates the highest return — bidding too low misses traffic, bidding too high erodes margins. Systematic bid testing is the most direct lever for improving campaign profitability once baseline performance data is established.
Why are the other options wrong?
Test only one version of your ad text
Testing only one version of ad text limits your ability to improve CTR and conversion rates. You need multiple ad variations to identify which messaging drives the most profitable results.
Lower the cost-per-click (CPC) bids and increase the budget
Lowering CPC bids while increasing the budget is contradictory — lower bids may reduce ad position and traffic quality, while a higher budget would just spend more on lower-performing placements.
Delete keywords that are generating the most clicks
Deleting keywords generating the most clicks removes potential conversion volume. High-click keywords should be analysed for profitability, not deleted outright.
Real-world example
An e-commerce store selling handmade candles calculates a £15 profit per order. They test CPC bids of £0.50, £1.00, and £1.50 on their top keywords. At £1.00 CPC they achieve a conversion rate of 3.2% and 180 orders/month — the sweet spot where profit per campaign pound is highest.
Official documentation: https://support.google.com/google-ads/answer/2472725
Topics in this question
About the Google AdWords Fundamentals Exam (Retired)
The AdWords Fundamentals exam was retired when AdWords became Google Ads.
Exam guide and all 140 AdWords Fundamentals (Legacy) questions →Related AdWords Fundamentals (Legacy) questions
- 1One of your clients wants to know why a campaign went over the specified daily budget several days in a row. What would you explain to your client about how the Google Ads system works?Explained
- 2When setting up a Search Network campaign for a client, you want to maximize the number of clicks her ads can get. Which bidding strategy should you use to achieve this goal?Explained
- 3When setting up a Search Network campaign for a client, you want her ad to get as many clicks as possible within her budget. Which bid strategy should you use to achieve this goal?Explained
- 4Mary’s campaign consistently meets its average daily budget. What should she do to maximize her budget throughout the entire day?Explained
- 5Your client’s campaign is consistently meeting its average daily budget. What should you do to maximize your client’s budget throughout all hours of the day?Explained
- 6Data for your client shows that more estimated total conversions are coming from mobile devices versus computers and tablets. How can you use this data to optimize your client’s bidding strategy?Explained