If your customer's business objective is to maximize conversions at a specific target spend, what should their Search Ads 360 bidding strategy be?

Budget bid strategies for clicks

Target return on ad spend (tROAS)

Budget bid strategies for conversions

Target cost-per-acquisition (tCPA)

Explanation

Analysis of Correct Answer(s)

The correct answer is Budget bid strategies for conversions. This strategy is specifically designed to align with the goal of maximizing a key performance indicator (in this case, conversions) while adhering to a strict spending constraint. A budget bid strategy tells Search Ads 360 to get the most conversions possible while aiming to spend a specific target budget over a defined period. This directly matches the customer's objective.

Analysis of Incorrect Options

  • Budget bid strategies for clicks: This is incorrect because the primary goal is to maximize clicks, not conversions. This would be chosen if the objective was driving traffic, not actions.

  • Target cost-per-acquisition (tCPA): While this strategy is conversion-focused, its main goal is efficiency—achieving conversions at or below a specific cost per acquisition. It prioritizes the CPA target over spending the full budget and may underspend if it cannot meet the target CPA, failing the "at a specific target spend" requirement.

  • Target return on ad spend (tROAS): This strategy is incorrect as it focuses on maximizing conversion value, not the number of conversions. It is used when the business objective is to achieve a certain return for every dollar spent on advertising, which is different from the stated goal.