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?

Analysis of Correct Answer(s)

The correct answer is a revenue-focused bidding strategy. This is because the marketer's goal is to achieve a specific return-on-investment (ROI), which directly relates revenue to cost.

• Revenue-focused automated bidding strategies, such as Target ROAS (Return on Ad Spend), are specifically designed for this purpose.
• This strategy allows the marketer to set a target for how much revenue they want to generate for every dollar spent on ads.
• Google's AI then optimizes bids in real-time to maximize conversion value and meet this specific financial goal.

Analysis of Incorrect Options

• A conversion-focused bidding strategy: This approach, using strategies like Target CPA or Maximize conversions, optimizes for the quantity of conversions. It does not account for the different revenue values each conversion might have, making it less precise for achieving a specific ROI.
• An awareness-based bidding strategy: This is used to maximize visibility and reach (e.g., impressions). Its goal is to put the brand in front of as many people as possible, not to generate revenue.
• A consideration-focused bidding strategy: This is designed to increase user engagement, such as driving clicks and website traffic (e.g., Maximize clicks). While clicks can lead to conversions, this strategy doesn't directly optimize for revenue or ROI.